Small business software is vital in order to keep your business running smoothly. There are many options when it comes to small business accounting software, but not all of them are ideal for UK businesses. Finding UK based software that is easy to use and powerful enough to handle all the financial aspects of a company can be difficult and time consuming.
This guide aims to help you find the best accounting software for your small business.
FreshBooks
- Available for: Web application
- Mobile app: Android, iOS
- Price: Plans begin at $15 per month
- Free trial length: 30 days
- Shopify app or integration: Yes
One of the most popular and well-known small business accounting tools available today is FreshBooks.
Many of FreshBooks’ tools feature smart assistive technologies and automations designed to make bookkeeping easy. FreshBooks can be configured to automatically reconcile credit and debit amounts and can automatically import financial data from a range of sources. Users can also adjust access permissions on an individual basis. For example, employees can be granted limited access to financial reports, while you can give your accountants administrator privileges.
Pricing starts at $15 per user per month for the Lite plan.
Wave
- Available for: Web application
- Mobile app: Android, iOS
- Price: Free
- Free trial length: N/A
- Shopify app or integration: No
Wave has over two million users, making it a popular free service among sole traders, freelancers and small firms. It promises unlimited accounting, invoicing and receipt tracking services, meaning you can use as much as you want for as long as you want. It’s also known for having a beautiful, easy to use interface.
However, payroll isn’t included in the free service, which is predominantly targeted at US customers. There’s also a pay-per-use policy for online payments, where you’ll pay per transaction. For this reason, it’s often not recommended for businesses with high sales volumes, and is often considered too basic for medium-size businesses.
Many of the small business accounting software tools we’ve looked at so far have been inexpensive. But for newly launched independent businesses, even inexpensive can be a little too much initially. Wave, an accounting tool designed for small businesses, understands that problem, which is why Wave is 100% free.
Available for Windows and OS X, and with Android and iOS apps for invoicing and receipts, Wave is ideal for independent businesses still finding their feet. Wave can do almost everything premium accounting software tools can do, including expense management, banking reconciliation, payroll, and invoicing.
If all this sounds too good to be true, sign up for a free account and see how Wave can help you manage your business’ accounts in less time––all without spending a dime.
QuickFile
QuickFile is well liked by many freelancers, entrepreneurs and small businesses, scoring 4.7 out of 5 from over 1,200 reviews on Trustpilot. It’s cloud-based accounting software, which allows you to automatically import transactions by connecting to 50 UK banks and over 300 other web services.
Some of its other helpful features include an app that lets you image and upload receipts on the go, a branded online portal clients can use to pay their invoices, multi-currency support and the ability to file VAT returns directly with HMRC.
QuickFile offers a free and paid-for service. To be eligible for the free service, you’ll need to keep your ledger entries under 1,000 a year and be prepared to encounter ads.
GnuCash
GnuCash is open-source desktop accounting software. This means that, unlike a cloud-based system, you’ll need to download and install it on to your device. The code is also available to anyone, allowing volunteer developers to add extra functionalities or fix errors. This makes the platform very flexible and completely free forever. You won’t have to put up with adverts, but on the downside it’s not the prettiest or most intuitive platform to work with.
GnuCash is often described as a ‘no-frills’ version of accounting software. It handles invoicing and credit notes, accounts payable and receivable and some payroll features, but doesn’t offer the more advanced features such as open banking integration or a mobile app.
VT Cashbook
VT Cashbook is great for small businesses looking for a simple, no-fuss way to manage the accounts. It’s desktop software, meaning you’ll need to install it – on the plus side, you won’t even require an internet connection to use it. The free version offers basic functionality, allowing you to record day-to-day cash transactions and prepare profit and loss statements and balance sheets. However, you’ll need to upgrade to the paid version if you want to create and file Making Tax Digital VAT returns.
FreeAgent
FreeAgent is only free to business banking customers of Natwest/Royal Bank of Scotland, but it’s a powerful piece of cloud-based software that’s used by over 90,000 small businesses in the UK. It allows you to automatically generate VAT returns and completes the majority of the self-assessment tax return form for you. It also gives you a clear view of the income, time and expenses associated with each project, so you can see whether you’re making a profit or loss in real time.
These features have won FreeAgent awards including the Small Business Accounting Software of the Year Award in 2018. However, the biggest drawback is that your bank will have full access to your financial data, so they’ll be able to see exactly what’s happening with your accounts.
Money Manager Ex
Similar to GnuCash, this is another open source tool, recognised for being well designed and with features to rival even premium software. It’s easy to understand and simple to use, making it a good option for sole traders. It’s great for budgeting and forecasting cashflow but getting set up initially is known to be fiddly and time consuming. It also operates entirely offline, meaning you won’t be able to link to online banking. Still, the entire program can run from a USB drive, making it portable.
ZipBooks
- Available for: Web application
- Mobile app: iOS
- Price: Plans begin at $15 per month
- Free trial length: 30 days
- Shopify app or integration: No
In the free version of ZipBooks, you’re able to produce an unlimited number of invoices to an unlimited number of customers. You can also use it for unlimited bookkeeping. As a cloud-based piece of software, it’s known for being really easy to use, with a modern looking design.
However, you’ll only have access to basic reporting features and can only connect one bank account. If you want to take advantage of the more advanced and intelligent features, you’ll need to upgrade to one of their paid packages.
Aimed at business owners who might lack experience with bookkeeping, ZipBooks is a simple, lightweight small business accounting software tool that takes the headache out of accurate accounting.
ZipBooks keeps everything as simple as possible. The product emphasizes the basics, such as accounts receivables, so users won’t be surprised by any complicated menus or intimidating features. ZipBooks’ statements and reports are similarly clean and minimal, focusing on the essential information entrepreneurs need to run their business.
The product’s Starter plan is free and includes unlimited invoicing, basic reporting, and a single bank account connection. Additional plans start at $15 per month.
Holded
- Available for: Web application
- Mobile app: Android, iOS
- Price: Plans begin at 10€ (approx. US$13) per month
- Free trial length: 14 days
- Shopify app or integration: Yes
Even simple accounting can be time consuming, which is why Holded aims to automate much of the busywork inherent to bookkeeping so you can get on with actually running your business.
Holded is a cloud-based accounting tool that offers real-time insights into the finances of your business. Users can integrate Holded’s general ledger with a range of financial data sources to provide at-a-glance overviews of profits and losses, forecasting and reporting, and detailed accounting histories, all with just a few clicks.
Holded is a deeply integrated accounting solution that offers major time savings. Pricing starts at roughly $11 per month, with a 14-day free trial.
Sage 50cloud
- Available for: Web application
- Mobile app: No
- Price: Plans begin at £65 (approx. US$82) per month
- Free trial length: 30 days
- Shopify app or integration: No
Sage 50cloud Accounting is a comprehensive, cloud-based accounting software product with extensive customization options and advanced functionality.
Conclusion
If you want to learn the best bookkeeping software for small business check out this article. You will read about a couple of helpful accounting software for small business which will help you to thrive in every market. There are many different bookkeeping software programs for small businesses online and you can choose from more than a few. Basically, these types of accounting software programs were created to fulfill your needs when it comes to dealing with your client’s accounts and financial records. In other words, it is all about managing money and accounts.