Have you ever wondered whether you should try self-employment? This might be the best of your life. If you are looking for Best Accounting Software for Self Employed Uk, I’m sure that this article will help you to get the most relevant information about software that suits your needs.
Are you a sole proprietor, freelancer, consultant, contractor or small business owner from UK? Are you struggling to find a top-notch accounting software that could meet your needs for managing your finances and earning taxes? Well, look no further! In this article, we take a look at some of the best accounting software for self-employed individuals in UK. We also review each one of them and discuss their pros and cons.
Best Accounting Software for Self Employed Uk
Accounting has to be one of the most hated and feared parts of any business. But sadly, there’s no escaping it. It’s completely essential that your accounts are up to date, accurate and submitted on time.
If you don’t, your business could face dire consequences. In fact, you can be fined £100 if your tax return is late. The later it is, the more you’ll pay. And of course, you’ll also be charged interest on those late payments.
It’s a mess you don’t want to get yourself into. Which is where accounting software comes in to help out.
In this guide, you’ll discover why you need this software, what accounts you need to keep and the top programmes to use for self-employed businesses in the UK. What are you waiting for? Let’s jump in.
#1 – Quickbooks (Our Rating = 9.4)
Quickbooks reached the top of our ratings by being one of the best all-round accounting software systems out there.
And luckily for you, Quickbooks was designed with small businesses in mind. So if you’re self-employed or a sole trader, this platform has all the features you need to do your accounting.
It allows you to generate and track invoices, organise and keep a record of all your cash flow and expenses. If you connect your bank account, it will automatically pull your transactions from there too, limiting the amount of manual labour you actually have to do.
Even better, Quickbooks is able able to automatically generate your tax returns. Now, that’s a load of your mind if you’re self-employed.
It’s also very cost-effective, with packages starting from just £12 a month. But you can try it for free with their 30-day trial. For more information, see our detailed Quickbooks review.
#2 – FreeAgent (Our Rating = 9.3)
Full disclosure, FreeAgent is the software that we use here at Business4Beginners. But there is a reason for that. It’s simple to use and one of the easiest software out there to get to grips with – particularly for anyone that’s self-employed with no previous experience.
It’s got some great features that help with:
- Estimates and invoices
- Expenses, with the ability for you to store photos of your receipts
- Time tracking, allowing you more accurate ways to invoice for your work
- Self-assessment tax returns
- VAT or any corporation tax
However, it’s worth pointing out that it’s not the most advanced software out there. But It’s got more than enough features for most self-employed businesses. You can find out more in our full FreeAgent review.
FreeAgent aren’t the cheapest option on the market with prices starting from £19 a month. But if you use our FreeAgent referral code, you can save 10% on you subscription for life. Now, that price is much better.
#3 – Xero (Our Rating = 9.1)
When it comes to accounting software, Xero is a powerhouse.
As we mentioned in our full Xero review, Xero one of the few companies that offer a version of their app on the apple watch. No matter where you are or what device, if you’ve got an internet connection you can access it. Now, that’s accounting on the go.
However, this software was developed to mostly cater to medium and large businesses – not the self-employed. As a result, some of the features and interface is a little complicated and just won’t be needed.
With prices starting from just £10 a month, they are relatively cost-effective software to use even if you don’t use these features.
#4 – Crunch Accounting (Our Rating = 9.1)
If you like your accounting software free of charge, you’ll love Crunch Accounting.
When we conducted our full Crunch Accounting review we found that while they provide an accounting software, they are actually accountants too.
This has several advantages. For instance, it means you have expert help on hand whenever you need it. You can also feel assured that the software is working to all the latest rules and regulations on bookkeeping.
The downside is the basic plan is free as they obviously hope you’ll become a customer of their accountancy services too. That means the paid packages are a little on the high side, though they do include full accountancy services such as tax & VAT returns.
Still, depending on the needs of your business, these are services you might not even want. The good news is, there’s no obligation to use their accountancy team even if you are using the free software.
FreshBooks – Best for impressing your clients
✔️ Impressive invoice and estimate creation tools
❌ Lite plan is limited to five clients
Recommended plan
Freshbooks Lite (£11 a month exc VAT)
Freshbooks began life in Canada in 2003, but has recently made a strong push in the UK, including adding Making Tax Digital (MTD) VAT integration in 2020. It’s a strong overall package, but what we really like is its invoice and estimate creation tools.
While most accounting software offers this, it’s been a key priority for Freshbooks for years, and this focus really shows. There’s a wide range of colours available, and it’s easy to import your own graphics, meaning you can very quickly produce invoices and estimates that perfectly reflect the tone of your self-employed business.
Freshbooks’ base plan, Lite (£11 a month exc VAT), also includes some really useful features for sole traders and freelancers. You’ll get:
- Unlimited time tracking
- Unlimited expenses
- Mobile mileage tracking
- Unlimited estimates
- Reporting tools
- Bank account integration
- The ability to easily create VAT reports that can be submitted directly to HMRC with a click
The real downside is the five client limit on the Lite plan. Freshbooks advises that this refers to “the number of both active and archived clients in your account”. However, “if you’re no longer billing or working with a client, you can delete them to free up spots for new clients”, and retain access to their invoices and information. You are also able to delete and undelete clients as you wish.
How much this impacts you will, of course, depend on how many clients your business has – but it feels like a rather strict limit given the monthly cost. The other option is to upgrade to the Plus plan, which costs £19 per month (exc VAT) and limits you to 50 billable clients per month.
In terms of support, Freshbooks does offer phone assistance alongside the resources on its website. However, this seems to operate on US business hours – meaning it’s only available from 1pm to 1am GMT – so make sure you bear this in mind when choosing the right self-employed accounting software for your business.
Verdict
Freshbooks offers some of the best invoice and estimate creation tools around, and all its plans include advanced features like time tracking, mileage tracking, and MTD VAT support. As long as you can stay within the five billable clients per month limit (or can afford to upgrade), then it could be the perfect self-employed accounting software for your business.
Sage Business Cloud Accounting – Best for customer support
✔️ 24/7 customer support
❌ Lacks some additional features
Recommended plan
Accounting Start (£12 per month exc VAT)
If you’re less confident with accounting software, then Sage Business Cloud Accounting is a strong option. Everything is arranged clearly and logically, plus there’s 24/7 support via phone and live chat, so there’s someone there to help whenever you need it.
Sage’s base package, Accounting Start, costs £12 per month (exc VAT) and includes tools to calculate and submit VAT returns. When it comes to self-employed accounting software, this plan is probably more suited to well established freelance/sole trader businesses.
With Accounting Start, you get a solid basic package. This lets you:
- Create and send invoices
- Track what you’re owed
- Automatically reconcile your bank accounts
- Create and submit MTD VAT reports to HMRC
However, if you need to work out Construction Industry Scheme (CIS) deductions, then you’ll require the £24 per month (exc VAT) Accounting Standard plan. This also grants you the ability to:
- Run advanced reports
- Send quotes and estimates
- Forecast cashflow
- Manage purchase invoices
And that’s it, unfortunately. No matter which plan you pick, you won’t get any advanced features like mileage tracking, and the ability to import expenses receipts by snapping them on your phone is only available as an optional extra.
Where Sage really shines, though, is its customer support. On all plans, you get 24/7 help via both phone and live chat, as well as a comprehensive suite of instructional videos and online guides.
Verdict
If you’re looking for basic accounting software and support to guide you every step of the way, then Sage Business Cloud Accounting could well be your best option for self-employed accounting software. The 24/7 support on offer is unrivalled, but for most freelancers and sole traders, the feature list is a bit limited for the price.
To learn more, check out our in-depth Sage Business Cloud Accounting review.
Conclusions
Some challenges that small business owners face include limited accounting knowledge and limited bookkeeping skills. If you are looking for accounting software for self employed then Sage 50 Accounting Software is best accounting software for self employed that will assist them to seamlessly record their transactions, process inventory, pay employees and receive funds from invoices.