Top 8 Best Accounting Software for Small Business UK
Home / Accounting Software for Small Businesses
Recent Blog
Arrange a FREE Consultation Call and Let’s Discuss Your Goals!
Here’s a comparison table for your ease:
| Software | Best For | Starting Price (Per Month) |
| FreeAgent | Freelancers & contractors | Free (with NatWest/RBS) |
| QuickBooks | All-rounder for growing businesses | £14 |
| Xero | Multi-user access & integrations | £15 |
| Crunch | Sole traders & micro-businesses | Free basic plan |
| Sage | Traditional businesses & accountants | £14 |
| Tide | Businesses wanting banking + bookkeeping | £9.99 |
| FreshBooks | Service-based and time-tracking businesses | £15 |
| Zoho Books | Tech-savvy, automation-focused SMEs | £12 |
Table of Contents
Running a small business in the UK means juggling through a thousand tasks. But one must not feel burdened when it comes to managing the finances. For that, you need the right accounting software, you can streamline operations, make sure HMRC compliance, and get a clearer picture of your business’s health. People who are a sole trader, freelancer, or growing limited company, this guide breaks down the best accounting software for small business UK, comparing features, pricing, and use cases.
MMBA Accountants has experts who are well-versed in accounting software. Their accounting expertise has helped many clients deal with accounting and taxation liabilities efficiently.
Top Accounting Softwares in UK 2025
1- FreeAgent
FreeAgent is a UK-based accounting software designed specifically for freelancers, contractors, and small business owners. However, it majorly known for its intuitive layout and tax-focused features, thus it offers a clean interface and a range of tools to manage everything from daily bookkeeping to VAT submissions and self assessment. What sets it apart is its seamless integration with HMRC and a unique offer. Also, it offers completely free access for Royal Bank of Scotland, NatWest, or Ulster Bank business customers.
What's Best for
Freelancers, sole traders, and contractors who want a simple yet powerful accounting tool that takes the stress out of corporation tax returns, VAT, and ongoing financial management.
Pros/Cons
| Pros | Cons |
| Free if you bank with NatWest, RBS, or Ulster Bank | Lacks some advanced features larger firms need |
| Built-in support for VAT, payroll, and tax return | Limited customisation compared to others |
| Great automation for upload receipts and bills | Not ideal for multi-location teams |
| Automatically generates HMRC-compliant reports | Few third-party integrations |
| Handles self employed and limited company needs | Inventory tracking is basic |
Pricing
The pricing plan starts at £14/month. But it is completely free for eligible Royal Bank business account holders. The paid plans include tools for invoicing, direct debit setup, and real-time financial reports. However, all plans come with a 30-day free trial and no minimum contract.
2- QuickBooks
QuickBooks is one of the most widely recognised accounting software providers in the UK. It’s cloud-based and scalable software. This makes it suitable for both sole traders and growing companies. In the recent times, QuickBooks is a widely used accounting software package. The developer of the accounting software is Intuit. The software was primarily designed for small and medium-sized businesses. As far as the efficiency is concerned, it helps manage financial tasks such as bookkeeping, invoicing, expense tracking, payroll, and tax calculations. QuickBooks offers both on-premises and cloud-based solutions, with QuickBooks Online being a popular choice for its accessibility and user-friendly interface.
What's Best for
It is best for those small business owners who want a comprehensive tool for invoicing, expense tracking, payroll, and tax submissions.
Pros/Cons
| Pros | Cons |
| User-friendly and modern interface | Can be expensive with add-ons |
| Seamless bank transaction imports | Support wait times can be long |
| Great for sales tax and VAT management | Some advanced features require upgrades |
| Mobile app offers full functionality | May be too feature-rich for very small firms |
| Excellent integrations including PayPal & Stripe | Higher tiers needed for project management |
Pricing
Its pricing starts at £14/month. However, the premium versions include payroll and quickbooks enterprise tools.
3- Xero
Another accounting software is Xero. It is a top pick among cloud based accounting platforms, particularly for businesses needing robust collaboration and integrations. Xero is primarily for small and growing businesses. It offers a range of features for managing finances; the prominent features include invoicing, bank reconciliation, expense tracking, and financial reporting. Xero is known for its user-friendly interface and the ability to integrate with over 1,000 third-party apps. The company is headquartered in New Zealand.
What's Best for
Businesses with multiple users, accountants, and third-party app integrations.
Pros/Cons
| Pros | Cons |
| Unlimited users across all pricing tiers | Limited features in the starter plan |
| Integrates with 1000+ business tools | Can feel complex for beginners |
| Includes accounts receivable/payable tools | Payroll requires additional subscription |
| Automatic invoice reminders and bank feeds | Less personal customer service |
| HMRC-compliant and making tax digital ready | Higher accounting software cost overall |
Pricing
The pricing starts at £15/month. However, more advanced plans include cash flow forecasting, inventory management, and time tracking.
Contact MMBA Accountants to know about
apt accounting software
Call us Today
4- Crunch
Crunch is a UK-native accounting solution built specifically for freelancers, contractors, and very small businesses. They take care of the expenses and make it manageable for people, looking for affordable accounting software options.
What's Best for
This accounting software is best for sole traders and micro-businesses. Thus, if you are looking for a completely free option or affordable accountancy support, this accountancy software can help you in this regard.
Pros/Cons
| Pros | Cons |
| Free plan available with essential tools | Not suitable for larger firms |
| Built-in accounting services option | Limited integrations |
| Helps with tax digital and HMRC returns | Fewer advanced tools |
| Ideal for sole trader use | UI could be more modern |
| Access to certified accountants (paid plans) | No payroll or inventory management |
Pricing
This is a free basic plan. The paid plans start from £24.50/month, and that includes accounting support as well.
5- Sage
Sage is a global leader in AI and machine learning-enhanced integrated solutions for accounting, payroll, and payments, empowering entrepreneurs and businesses of all sizes to thrive. Sage is trusted by accountants and established companies alike. Sage offers a new generation of cloud-based, mobile-first tools. These tools are to help businesses manage their finances, people, and operations with confidence.
What's Best for
It is established for SMEs who need accounting software. This accounting software is designed for complex reporting and regulatory compliance.
Pros/Cons
| Pros | Cons |
| Longstanding presence in the UK market | Learning curve for non-accountants |
| Excellent basic accounting features | Less modern interface |
| Trusted by professionals | Mobile app lacks key desktop features |
| Built for limited companies and growth | Customer support varies by plan |
| Compliant with business accounting standards | Integration options are fewer |
Pricing
The pricing starts at £14/month. However, the higher plans include payroll, advanced reports, and enterprise resource planning integrations.
6- Tide
Tide offers a business bank account with bookkeeping features, offering a convenient, all-in-one solution. Primarily, Tide accounting software is an integrated financial solution for small businesses in the UK. It is built by the creators of the popular Tide business bank account. Thus, it combines seamless banking with easy-to-use bookkeeping tools. It has features like automated invoicing, expense tracking, and tax categorisation. Tide helps small business owners manage their finances without juggling multiple apps. In sum, it’s ideal for startups and sole traders who are looking for a simple, all-in-one system that saves time and keeps their business finances organised.
What's Best for
It is best for startups and small businesses that want to manage both banking and accounting in one place.
Pros/Cons
| Pros | Cons |
| Bank account + accounting = fewer tools needed | Not a full accounting package |
| Supports pay enabled invoices | No payroll features |
| Easy receipt upload for expense management | Reporting tools are basic |
| Real-time insights into business finances | Fewer integrations with third-party apps |
| Simple for users with no accounting experience | Not ideal for growing complex businesses |
Pricing
The pricing plans start from £9.99/month. It includes features like invoicing, auto-categorisation, and basic reports.
7- FreshBooks
FreshBooks is a sleek bookkeeping software platform and it is popular with creatives, consultants, and service providers. FreshBooks is a cloud-based accounting software. It is built with service-based small businesses in mind. It has a user-friendly interface and it has strong invoicing capabilities. Due to this, it’s a favourite among freelancers, consultants, and creative professionals. FreshBooks simplifies tasks such as, tracking billable hours, manage expenses, and to send professional invoices, all while keeping your business finances organised and accessible. It has powerful automation and built-in time tracking. This makes it an ideal choice for those who value efficiency and ease of use in their day-to-day operations.
What's Best for
Professionals and freelancers who bill clients by time or project and want simple invoicing.
Pros/Cons
| Tax Band | Total Income (Including Dividends) | Dividend Tax Rate |
| Basic Rate | Up to £50,270 | 8.75% |
| Higher Rate | £50,271 – £125,140 | 33.75% |
| Additional Rate | Above £125,140 | 39.35% |
8- Zoho Books
Zoho Books is part of Zoho’s ecosystem. It delivers top-tier automation, customisation, and analytics. Zoho Books is a powerful, cloud-based accounting software for small to medium-sized businesses. It offers an all-in-one solution for managing invoices, to track expenses, to reconcile bank transactions, and staying compliant with HMRC regulations. It has a user-friendly interface and a wide range of features, from project billing to workflow automation. Zoho Books is ideal for tech-savvy business owners who want more control and insight into their finances without the need for complex software.
What's Best for
It is best for tech-forward businesses that want to connect accounting with CRM, HR, and other internal tools.
| Pros | Cons |
| Real-time credit card transactions logging | Can be complex for newcomers |
| Integrates with 40+ Zoho apps | Limited UK payroll tools |
| Great dashboard for financial information | Some support content not UK-specific |
| Built-in expense receipts and automation | UI feels crowded for small screens |
| Excellent for data entry automation | Accountant access setup takes time |
Pricing
From £12/month. Includes customer accounts, automatic reminders, and full balance sheet reporting.
What to Look for When Choosing Accounting Software for Your Business
Choosing the right accounting system is about finding a tool that aligns with your business needs and helps you stay ahead of day-to-day tasks. For a small business owner, the ideal solution should be flexible, easy to use, and packed with features that simplify financial management.
Many smart accounting software solutions now offer a 30 day free trial. This lets you explore the platform before committing. When testing software, pay attention to if it supports essential features like project tracking, upload receipts, and sending payment links for faster invoicing.
If you deal with international clients, choose a platform that handles multiple currencies. Similarly, if you’re self employed or you are running a limited company, then make sure that the software supports both self assessment and corporation tax returns.
Also, don’t overlook the hidden fees. Some platforms look affordable up front but charge extra for essentials like auto enrolment, direct debit processing, or filing your tax return. Make sure you review the pricing details, that includes the entry level plan, and check if there’s a minimum contract period before signing up.
Also, make sure the platform works reliably with your internet connection, especially if it’s a fully cloud-based system. Also, keep in mind that the most modern tools are accessible from anywhere, but a weak connection can hinder productivity.
Some providers even offer exclusive deals through partners like FreeAgent, which is available at no cost for Royal Bank of Scotland or NatWest business account holders. In short, when you choose the accounting software designed for freelancers or something robust for a growing business, prioritise usability, flexibility, and transparency.
Do I Need an Accountant for My Small Business in the UK?
Yes, you need an accountant for your small business in the UK. Even the most powerful small business accounting software cannot replace the strategic and legal expertise of a qualified accountant. They’ll help with year-end accounts, tax returns, and business structure advice.
From £12/month. Includes customer accounts, automatic reminders, and full balance sheet reporting.
What Are the Benefits of Using Business Accounting Software?
Using the right accounting software offers massive advantages:
- Automates accounts payable and receivable
- Reduces repetitive data entry
- Provides real-time cash flow visibility
- Makes sure HMRC compliance with tax digital
- Helps manage invoices, credit card statements, and bank feeds
Is Online Accounting Software Secure?
Yes, modern online accounting software providers use SSL encryption, GDPR compliance, and two-factor authentication. Data is often backed up across multiple secure servers, protecting your financial institutions and records.
How Cloud Accounting Software Can Help You?
Cloud accounting software can help you in many ways. With cloud based software, your accounts are accessible anytime, and anywhere. It supports collaboration, remote teams, and mobile access. Moreover, the updates happen automatically, and integrations extend functionality far beyond simple ledgers or basic packages.
Conclusion
Finding the best accounting software isn’t about the fanciest dashboard or the cheapest plan. It’s about what fits your needs. From free accounting software for sole traders to scalable software packages with advanced accounting tools, UK businesses have more options than ever.
This list of the top 8 accounting software for small businesses in the UK helps narrow down your choices. Whether you need tools for expense tracking, project management, or simply to make your accountant’s job easier, there’s a platform designed to support your growth.
Frequently Asked Questions
Do I still need an accountant if I use Xero?
Yes, Xero automates tasks but doesn’t replace expert advice for things like tax planning and legal compliance.
What is the most used accounting software in the UK?
QuickBooks and Xero top the list for UK small businesses.
What is the easiest accounting software for a small business?
FreshBooks and Crunch are beginner-friendly with simplified UIs and essential tools.
Does QuickBooks work in the UK?
Yes. QuickBooks Online offers a dedicated UK version, compliant with HMRC’s digital tax system.
How much are monthly accounting fees for a small business in the UK?
Accounting fees vary based on complexity, typically ranging from £50 to £300/month.
Facebook
Twitter
LinkedIn