As an accountancy firm, we know how fast things change in this industry. And if you’re a business owner, you’re probably already feeling the pressure to keep up with the accounting trends in 2025, whether it’s the latest cloud-based software, tax rules, or how sustainability fits into the financial picture.
So, we’ve pulled together a quick roundup of the key accounting trends we think you’ll want to keep an eye on in 2025. Some of them might already be on your radar, and others might be brand new, but all of them are shaping the way UK businesses handle their finances.
1. Cloud accounting is the new standard
If you’re still using spreadsheets or desktop software, now’s the time to make the switch to cloud accounting and allow your business to thrive. Tools like Xero, QuickBooks, and FreeAgent has transformed the way businesses manage their finances and made it easier to stay on top of everything.
Why it matters:
- You can check your accounts anytime, anywhere that you are.
- Your accountant (hopefully us!) can work in real-time with you.
- It’s more secure than keeping everything saved locally.
- It connects with your bank and other apps for smoother workflows.
Most importantly, cloud software is fully compatible with Making Tax Digital, which leads us nicely to the next point…
2. Making Tax Digital (MTD) is expanding
MTD for Income Tax is already on its way, and it’s only going to grow. More thresholds will follow in 2026, so if you haven’t sorted your digital setup yet, now’s the time to get ahead and become used to it.
What it means for you:
- You’ll need to use MTD-compliant software
- Keep digital records (no more piles of paper!)
- See your profits month by month if kept tidy
- Submit updates to HMRC every quarter
We’ve been helping clients get MTD-ready, so, if you’re unsure what you need, just drop us a message. It will be amazing for your business, trust us.
We also have a full informative blog, helping you to understand MTD for ITSA, which you can check out here.
3. ESG isn’t just for big businesses anymore
Environmental, Social, and Governance (ESG) reporting is becoming a real consideration for small and medium-sized businesses too, with more consumers looking to support eco-friendly businesses. Whether you’re applying for funding, going after larger contracts, or just want to future-proof your business, ESG is something to think about.
Here’s what we’re seeing:
- Lenders and investors are asking more ESG-related questions
- Businesses want to show they’re reducing their carbon footprint
- Some cloud accounting tools now include built-in ESG tracking
Even if you’re not reporting officially yet, having something in place shows you’re thinking long-term.
4. Real-time reporting is driving better decisions
Waiting until year-end to understand your business finances is officially outdated. Thanks to cloud tools and automation, real-time reporting is more accessible than ever.
What you can do with real-time financial data:
- Monitor cash flow and profitability daily or weekly
- Make faster, more informed business decisions
- Spot issues before they become problems
If you’re only looking at your numbers once a quarter or even once a year, it might be time for a financial health check. Why would you not want to?!
Final Thoughts
Run your business smarter, not harder with these accounting trends.
If you’re unsure about any of these changes, don’t hesitate to reach out to us, we want to help you and your business. This could be making the move to cloud accounting software, sorting your MTD submissions, or looking into ESG.
And don’t forget to follow us on social media for the latest updates, tips, and more!
