If you’re a landlord and you’ve not yet transitioned to digital bookkeeping, the introduction of Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) means that now is the time to bite the bullet.
Feeling apprehensive about the change is understandable, especially if you’ve spent years relying on spreadsheets and a box full of receipts. Bookkeeping software can be intimidating at first, particularly if you’re not familiar with accounting terminology or don’t consider yourself to be very tech-savvy.
The most popular accounting software options, like QuickBooks, Xero, and Sage, are primarily designed for accountants and businesses that sell products or services – not landlords managing a handful of properties.
Thankfully, there are other, more landlord-friendly options available, like PaTMa’s Property Manager, which combines both bookkeeping tools and property management features.
In this article, we’ll explain what bookkeeping software is used for and what options are available for landlords, exploring the pros and cons of generic bookkeeping software versus specialist landlord software.
What is bookkeeping software, and what is it used for?
Bookkeeping and accounts software is used by businesses of all shapes and sizes to keep track of their income, expenses, invoices, and financial records.
Each software offers slightly different features, but most options can be used to:
- Record rental income.
- Track expenses.
- Categorise transactions.
- Store receipts digitally.
- Generate financial reports.
- Prepare for tax returns.
- Submit digital tax records under MTD.
Bookkeeping software helps you to keep all your financial records organised and safe. Rather than poring over scraps of paper and rifling through boxes of receipts, everything is stored digitally in one central and secure location.
It can also help to save a huge amount of admin time. Most platforms offer automation tools that can complete tasks like importing bank transactions, categorising expenses, and generating reports, reducing both manual labour and the risk of human error.
Why has digital record-keeping become a must for landlords in 2026?
Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) came into effect on 6 April 2026, meaning that all landlords with qualifying income over £50,000 a year now need to keep digital records and file and submit their tax returns online each quarter.
This modernisation of the UK’s tax system has prompted a wave of landlords who have never used bookkeeping software before to begin exploring their options, but there are still many more who haven’t started. A couple of weeks after the MTD deadline, the Financial Times reported that only a quarter of the landlords and sole traders who need to sign up for MTD had done so.
With the clock now counting down to 7 August, when the first digital quarterly update is due, now is the time to get your head around how to use bookkeeping software and submit your tax returns to HMRC using an HMRC-recognised MTD-compatible software. Any landlords who are not ready by the time the first submission date rolls around are at risk of receiving a penalty.
The pros of using bookkeeping software as a landlord
If you’ve always kept records the old school way and never used bookkeeping software before, it may feel like a steep learning curve to begin with. However, once you’ve got your head around the new way of working, there are many advantages to digital bookkeeping.
Let’s explore some of the pros of using bookkeeping software as a landlord.
Comply with MTD
Most popular bookkeeping software is now MTD-compatible, making it easy for landlords to keep digital records, submit their tax returns electronically, and stay compliant.
Save time through automation
Bookkeeping software can help landlords to dramatically reduce the amount of time they spend on admin by using automation tools to complete tasks like importing bank transactions, categorising spending, generating reports, and storing receipts digitally.
Better visibility of cash flow and profits
Bookkeeping software makes it much easier to keep track of your expenses and track how each property is performing, helping you to make more informed business decisions.
Easier expense tracking
When you have a more comprehensive and organised record of all your expenses, it’s easier to identify all your allowable expenses when it comes to completing your tax return.
Keep records organised
When all your financial records are stored in one organised, central location, it makes it much easier to search for and retrieve the information you need.
Why generic bookkeeping software isn’t always the best option for landlords
While accounting software like Xero and Hammock can be incredibly useful, generic bookkeeping platforms are not always the best fit for landlords.
Let’s find out more about some of the downsides of opting for generic bookkeeping software over one of the more landlord-friendly alternatives available.
They’re not designed with landlords in mind
Accounting platforms like QuickBooks and Xero aren’t designed with landlords in mind. They’re aimed more at businesses that sell products or services, and the additional tools they offer, like sales invoices and stock control tools, reflect this.
They can be overly complicated
Generic bookkeeping software often uses intimidating accounting terminology, like double-entry bookkeeping, journals, ledgers, and reconciliation. Landlords have relatively simple bookkeeping needs, making generic software unnecessarily technical at times.
You may end up paying for features you don’t need
As we’ve already mentioned, most landlords don’t need overly complicated accounting tools. All they need is a system for tracking rental income and expenses and calculating and submitting tax returns. When you use generic accounting software that is not designed for your needs, there’s a risk you could end up paying a premium for additional features that you simply won’t use.
Property management tasks must be completed elsewhere
Most landlords want to keep things as simple and organised as possible by managing everything in one place. The problem with generic bookkeeping software is that it usually only covers the financial side of things. You still need to use separate systems for compliance, tenancy agreements, communications, document storage, and more. When you’re using multiple systems, things can quickly become messy and inefficient.
The advantages of using property management software vs generic bookkeeping software
Unlike platforms like Xero and QuickBooks, landlord software, like PaTMa’s Property Manager, is designed specifically for landlords.
Rather than focusing solely on bookkeeping, it provides an all-in-one solution, helping landlords to manage every aspect of their property rental business from one platform.
Features vary from one software to another, but most property management platforms offer the following tools:
- Bookkeeping
- Digital tax submissions
- Compliance
- Tenancy management
- Document storage
- Maintenance tracking
- Communication logs
- Task reminders and alerts
Key advantages of choosing landlord software over generic bookkeeping software include:
Better value for money
With landlord software, everything you’re paying for is relevant and useful to you and your business; you’re not paying a premium for advanced accounting tools that you’re never going to use.
More user-friendly
Property management software is designed to be as simple and intuitive as possible, to make your life as a busy landlord easier. The layout, features, and workflows are built around property management rather than accounting, making everything feel more familiar and less daunting.
Efficient and organised
Using one software that does everything is a far more efficient and organised way of working. Instead of wasting time juggling different software or flitting between spreadsheets, emails, apps, and paper documents, landlord software centralises everything, reducing admin, saving time, and reducing the risk of important deadlines slipping through the cracks.
Why choose PaTMa’s Property Manager for bookkeeping and property management?
PaTMa’s Property Manager tool helps landlords to do so much more than just keep digital bookkeeping records and submit tax returns for MTD. It’s a complete tool for streamlining the way you work, gaining more visibility over your portfolio’s performance, and freeing up time to grow your property rental business.
PaTMa helps landlords to:
- Track rental income and expenses
- Store invoices and receipts digitally
- File and submit quarterly tax returns for MTD
- Manage tenancy agreements and documents
- Track maintenance requests
- Build detailed inventories
- Set reminders for important compliance deadlines
- Streamline day-to-day property management operations
With compliance requirements growing across the private rented sector, staying organised has never been so important. PaTMa helps landlords keep all their important documents, records, and communications in one central location, while automatically building a clear audit trail, which can be invaluable if issues or disputes arise.
Whether you’re looking for a simpler way to manage bookkeeping or a complete solution for streamlining day-to-day property management, PaTMa is designed to make your life as a landlord easier.
To learn more about PaTMa and find out whether it is the right software for you and your portfolio, book a free online demo or start a free trial today.
