Sage expands AccountsPrep to help firms scale for MTD

Sage has expanded AccountsPrep within Sage for Accountants as UK accountancy firms prepare for a wider rollout of Making Tax Digital (MTD) for Income Tax.

Up to 2.9 million additional sole traders and landlords are expected to come into scope of digital reporting in the coming years, increasing demand for help with record keeping, data preparation and tax submissions. This is likely to be felt most by clients who do not use fully digital bookkeeping.

AccountsPrep targets practices that manage accounting work for clients who still use paper records, PDFs, or information spread across different sources. It standardises how firms collect and prepare client data, improving consistency and reducing manual handling as workloads grow.

AccountsPrep is now part of Sage for Accountants on a client-based pricing model, costing £3.00 per client per month.

MTD workload

The expansion of MTD for Income Tax is prompting firms to reassess how they handle large volumes of pre-accounting work. Many practices use a mix of spreadsheets, email and manual processes when clients supply incomplete records. Those approaches can work at lower volumes, but become harder to manage as firms take on hundreds or thousands more clients who need support with day-to-day record keeping.

Sage positions AccountsPrep as a way to improve control over the quality and audit trail of incoming client data. It is aimed at practices providing an end-to-end service for clients who do not maintain digital records themselves.

AccountsPrep converts source documents into trial balances and includes intelligent data extraction and automated journal adjustments. The workflow is designed to support submissions that meet HM Revenue & Customs requirements.

Product line-up

AccountsPrep is part of a wider set of tools within Sage for Accountants, including Sage Accounting and an MTD Income Tax Agent. Those products target clients who already keep digital records and work within digital processes.

The updated AccountsPrep offer focuses on clients who rely on an accountant to maintain their records and prepare information for compliance.

Lisa Ewans, SVP Product, Small Business & Accountants at Sage, said the shift to digital reporting would not automatically change how smaller businesses operate.

"For millions of small businesses, MTD will change how they report, but not necessarily how they work," said Ewans.

Sage has also highlighted earlier work on an MTD AI Agent as part of its broader MTD proposition. Ewans linked the push towards automation with the need for accuracy in compliance workflows.

"That places accountants at the centre of supporting compliance at scale. From the launch of our MTD AI Agent to strengthening pre-accounting capabilities such as AccountsPrep, our focus is on helping firms manage increasing volumes while maintaining quality and control in workflows where 'nearly right' isn't good enough," she said.

Pricing and credits

The per-client pricing model is designed to give practices predictable costs as they add clients. Each plan includes credits that can be used for automated processing to structure client data for submissions.

Early adopters receive a fixed free allowance of 750 credits per client plan for a limited period. After that, purchases include 50 free credits.

Practise pressure

For firms expecting an influx of clients, pre-accounting work can become a bottleneck. It includes chasing missing information, checking totals, correcting errors and preparing clean figures for year-end accounts and tax submissions. Firms that take responsibility for these tasks also need consistent internal controls as teams grow.

Sarah Bedford, Director at HMB Accountants, said MTD had prompted an operational review.

"MTD has prompted us to review how we operate as a firm," said Bedford.

Bedford said scaling client numbers can strain existing processes.

"Processes that were manageable at 200 clients can become challenging at 2,000. Standardising pre-accounting has become critical, not just for efficiency, but to maintain quality and control when you are responsible for the full client journey," the director said.

Sage said the AccountsPrep expansion is aimed at UK accountancy firms working with sole traders and landlords, particularly where clients need hands-on help with digital record keeping and compliance as MTD for Income Tax reaches more taxpayers.