In the past, accounting software was complex and cumbersome. It was generally more suitable for large enterprises than small businesses. Now, there’s a huge range of accounting software that’s been designed especially for small businesses and the self-employed. Many of the products are inexpensive (or even completely free).
The best accounting software for small business is the one which has very easy to use with high features. This is not an easy topic but I’m going to share with you today. You’ll be able to know about the very best Small business accounting software in UK. This post is specially for small business owners who are looking for free accounting software online.
This type of software is designed to make it easy for you to manage your business finances, helping you with things like book-keeping, invoicing, purchase orders, inventory, and payroll. The product you pick will usually include reporting tools as well, so you can track your cash flow and monitor your profit and loss, for example. And with Making Tax Digital now in force, businesses need to make an informed choice about the accounting software they use to keep digital records and send tax returns.
1. Bokio Accounting Software
Bokio is completely free accounting software and has the advantage that it is linked to accountants. It means if you have a problem, there are people available to help but at a price.
It is suitable for small businesses, sole traders and freelancers.
The dashboard is straightforward, giving a breakdown of expenses and customers. I have set up one of my clients on Bokio, and they picked it up very quickly. They had previously used Wave Apps, but they decided it was time to change due to bank feeds and support withdrawal.
Advantages of Bokio
- Record as many transactions as you want free of charge
- VAT returns are making tax digital compliant
- Automatic banks feed with most banks.
- Easy to use dashboard
- Will do most simple accounting tasks.
- You can invite other users, bookkeepers, or accountants to share the software.
- Manage Expenses
Disadvantages of Bokio
- Not much choice for invoicing layout.
- Not many financial reports are available.
- It can be expensive if you need support.
- 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. It is not as pretty as some of the other accounting software we have looked at, but it is usable and has all the features for sole traders to manage their accounts.
GNUCash Advantages
- Downloaded to your PC no internet connection needed
- Open Source software
- Enter sales invoices
- Ideal for personal or freelancers
- Financial Reports available
- Alternative to Excel Templates
GNUCash Disadvantages
- Not as user friendly as others
- Very basic invoicing
- Will calculate VAT but not making tax digital compliant
3. Crunch Accounting Software
Crunch was started in 2007 by its founder Darren Fell after he found shortfalls in accountancy firms. He, therefore, decided to set up an all-inclusive service for freelancers, contractors and small businesses. Crunch Accounting software is ideal for self-employed, freelancers and small businesses. They offer a free version, which is simple to use.
Crunch Accounting Software Advantages
- Easy to use dashboard
- Easy to setup
- Free version
- Upload bank statements
- Unlimited transactions
- Accounting invoicing on the go
- Unlimited Expenses
- Cloud-based accounting software
Disadvantages of Crunch
- No financial reports available
- Can’t set the VAT rate
- Straightforward invoice template with no options.
4. Pandle Accounting Software for Small Business
Pandle is free to use, but you will require the paid-for version if you want bank feeds.
I recently set up an account for a small charity in the UK; after a couple of hours of training, they were up and running the software themselves. They have now used the software for a couple of years, and it does everything they need.
Advantages of Pandle
- Easy to use dashboard
- Issue Customer Invoices
- Keep track of outstanding invoices.
- Reports are available, and they are adding more.
- Videos on how to complete transactions
- Developed by Accountants
- set up credit card account
Disadvantages of Pandle free accounting software
- Bank feeds a paid-for version.
- Not as many reports as some of the more popular packages.
5. Wave Apps
Wave Apps was one of the recommended cloud accounting software for small business. In recent years they have concentrated in the United States and Canada.
They have closed all new UK customers and may withdraw customer support in the future. If you are a Wave user, you will also notice that the bank feed is not working.
It is an excellent option for any business based in the US or Canada investing in new features.
- Advantages of Wave Apps
- It is an online software (cloud-based) package, so there is no need to download the software and access it from anywhere.
- The dashboard shows a snapshot of your business, including bank balance, income and expenses over a year, sales invoices that you are owed and purchase invoices you owe and a Pie chart showing a breakdown of payments for a year or month.
- Several different invoice designs will make your business look professional.
- It is simple to use and can be set up in minutes.
- There are many financial reports available to view or print off including, Profit & Loss, Balance Sheet, Invoices owing and VAT report.
- Can accept Credit Card payments for a fee.
- A photograph of receipts can be taken on the app while out and about, making recording transactions easier.
- You can invite other users to access the accounts, including someone else in the business, bookkeeper or accountant.
- You need to have online access to use it.
- There is some advertising on the software.
- You may need to pay for it if you need support, although there is a free online community.
- It will not keep track of stock; a paid-for package is best for this.
- Not GDPR compliant.
- Due to open banking, links to the bank accounts are not available.
- Will not comply with making tax digital
6. QuickFile Free Accounting Software UK
QuickFile Free Accounting Software – Dashboard
A lot of work has gone into QuickFile over the last few years. When I first looked at it, I didn’t include it as I struggled with the layout. It now has a clear dashboard and is easy to set up. It also has some features as standard, which are paid for in other apps.
QuickFile is free until you reach 1000 nominal transactions per year. An example of a nominal transaction is a sales invoice that will record in the customer account and a sales account and therefore has 2 nominal transactions. Once you reach 1000, the price is £45 + VAT.
Advantages of QuickFile
- Easy to set up
- Choice of invoice design
- Upload documents
- Can handle estimates, purchase orders and delivery notes
- The clear layout of the dashboard
- At a fee, they can send out accounting invoicing by post.
- VAT Returns completed directly with HMRC
- Multicurrency
- Lots of reports to download or view on screen
Disadvantages of QuickFile
- automatic importing of bank data have an annual fee.
- If your business expands, you will need to pay for the software, but still cheaper than other packages.
Conclusion
Any of the above packages may prove a useful tool for your business, and reduce the amount of work you need to give to an external accountant. However, none of them can replace the services of a qualified accountant, who can bring a level of expertise, proactivity and professional experience to your business that no software package can emulate