Do Tutors Actually Need Accounting Software? A Practical Guide

Full accounting software can cost £10-50 per month. But as a tutor earning £20-50k per year, do you actually need it?

The honest answer: probably not. Here's how to figure out what you actually need.

What Full Accounting Software Does

Full accounting platforms are designed to:

• Track all income and expenses
• Connect to your bank for automatic transaction import
• Calculate VAT (if registered)
• Generate profit & loss reports
• Prepare Self Assessment data
• Create and send invoices
• Manage multiple income streams
• Track receipts and expenses

They typically cost £10-50/month depending on features.

When You DO Need Full Accounting

You likely need accounting software if:

• You're VAT registered (turnover above the VAT threshold - currently £90,000 as of April 2024, but always verify at gov.uk/vat-registration-thresholds)
• You have significant expenses (equipment, travel, marketing)
• You have multiple income streams (tutoring + other work)
• You need financial reports (for loans, mortgages, business decisions)
• You want automated bank reconciliation

In these cases, the investment makes sense. Research accounting software options and choose one that fits your needs.

When You DON'T Need Full Accounting

Most tutors don't need full accounting software because:

• Income is simple - Tutoring fees from clients, maybe some exam prep materials
• Expenses are minimal - Some books, a whiteboard, maybe a subscription
• Below VAT threshold - Under the current threshold (verify at gov.uk), no VAT to track
• Self Assessment is straightforward - A simple spreadsheet covers your needs

If this sounds like you, paying for comprehensive accounting software is likely overkill.

What Tutors Actually Need

Most tutors have a simpler problem: getting paid on time.

The real pain points are:

1. Parents forgetting to pay
2. Awkward reminder conversations
3. Tracking who's paid and who hasn't
4. Chasing late payments manually

None of these are solved by accounting software. They're solved by a payment reminder system.

The Practical Solution Stack

For most tutors under the VAT threshold:

For Payment Collection:

• A simple system to track clients and payments
• Automatic reminders before and after due dates
• Easy payment option for parents (card payment)
• Payment tracking so you know who's paid

For Accounting:

• A spreadsheet tracking income by month
• A folder of receipts for any expenses
• Self Assessment at year end (or a one-time accountant visit)

Total cost: Much less than full accounting software.

When RemindToPay ISN'T Right For You

Let's be honest about when you need something else:

You need accounting software if:

• VAT registered and need to file returns
• Running a tutoring business with employees
• Significant expenses to track (agency, office, staff)
• Need financial reports for business decisions
• Multiple revenue streams to reconcile

You don't need RemindToPay if:

• Clients always pay on time (lucky you!)
• You only have 1-2 clients (easy to track manually)
• You work through an agency that handles payments

The Honest Recommendation

1. If you're under VAT threshold with simple finances: Use RemindToPay for payment collection + a spreadsheet for basic records.

1. If you're approaching VAT threshold: Start with accounting software and add RemindToPay for the payment collection features accounting software doesn't handle well.

1. If you're already using accounting software: You might still benefit from RemindToPay's automatic reminders and client portal - accounting software sends invoices but doesn't chase payments effectively.

What About "Free" Accounting?

Some accounting tools have free tiers, but:

• Features are limited
• They're designed to upsell you
• Payment reminder features are basic or non-existent
• Client portals usually require paid plans

"Free" often means "limited until you pay".

VAT Disclaimer: VAT thresholds can change. Always verify current thresholds at gov.uk/vat-registration-thresholds before making business decisions.

Not sure what you need? RemindToPay is free for up to 5 clients. Try it and see if payment collection is your actual problem.

What Tutors Actually Need

If your real problem is getting paid (not accounting), RemindToPay is built for exactly that:

• Track who owes what - See all outstanding payments at a glance
• Automatic reminders - Professional, not awkward
• Client payment portal - One-click card payments
• No accounting complexity - Just payments, done right

Try free with up to 5 clients → - no credit card required.