A short while ago, the answer would have been a simple no, although it helps. Now it is a little more complicated, do not worry though, as all of our clients have access to our free accountancy software or you can use your own.
If you are VAT registered and above the VAT threshold (currently £85,000), then from April 2019 onwards you have to have MTD compatible software in order to submit your VAT returns. There are many options available, you may have heard of some popular solutions such as Xero, Quickbooks or Sage.
For everyone else, there is currently no legal requirement for an accounts package, although this will change in the future as MTD is going to be rolled out for everyone. In addition, having a good accounts package can make your life much easier, with up to date reporting and the ability for your accountant to log in and work on your records directly. Some packages also have clever features such as the ability to automatically scan receipts or track mileage.
So in summary, many people do need cloud based software and eventualy almost everyone will. If you join us, then you will need cloud accounting software, and we provide our own free for you.