Free is good, and free accounting software for small businesses (micro-businesses) is even better. This micro business accounting software is the best free bookkeeping software for small business UK.
Free accounting software for small business in UK that integrates well with Xero online accounting. It is the best accounting software for small business and is considered to be a good home-based bookkeeping & accounting software package.
Zoho Books
- Powerful features (though the best ones are paid for)
- Cloud-based – works on web browser, mobile and tablet
- Colourful, intuitive interface
Zoho made its name with its CRM systems (check out our review of Zoho CRM here) but it has offered accounting software since 2011. Zoho Books’ free plan is the best overall choice for free accounting software, though things improve further if you pay out for a premium tier.
It combines a simple and intuitive interface with powerful features that means, even on the free tier, Zoho Books effortlessly handles all the basics.
In short, it’s a great choice for businesses just starting out.
What can Zoho Books do?
On the free tier, Zoho Books offers all this:
- Create, customise and send invoices (up to 1,000 per year)
- MTD VAT filing
- Automated payment reminders
- Expenses & mileage tracking
- Create business reports
- Run an audit trail
- Produce recurring invoices
- Integrate with other Zoho apps and other apps like GSuite, Office 365 and Dropbox
- Email support
Why is Zoho Books free?
Zoho offers a free plan, but of course, there are drawbacks. For one, it’s limited to 1,000 invoices per year, and lacks a number of features that can make a huge difference to the level of debt in which accounting software can help your small business.
We’ve taken a closer look at how Zoho’s free plan matches up to its £12 per month (+VAT) Standard plan below:
Zoho Books Free vs Standard
While Zoho’s free plan is very useful for businesses just starting out, there are some big reasons you should consider signing up for the Standard plan.
Most notably, the Standard plan lets you create up to 5,000 invoices per year, as opposed to just 1,000 for the Free plan. This means that Zoho Free won’t be suitable for businesses with high transaction volumes, and SMEs with serious growth plans should go for a paid plan.
Another key point is that Zoho Standard comes with bank feed integration. What this means is that once you’ve linked your business bank account, any transactions you make will automatically appear in Zoho Books. With Zoho Free, you’ll have to download and import bank transactions, an annoying and time-consuming task when you’re busy running your business.
On a paid tier, you’ll also be able to create recurring expenses, add up to three users, track project expenses, use a larger number of payment gateways, integrate with other services including Uber and Zendesk, and get support via voice and chat.
So, while the Free plan definitely has its plus points, the extra features and higher limits of Zoho Standard make it a very persuasive option for UK small businesses.
When comparing them, make sure you consider just how much time and effort you’d save with the Standard plan – letting you get on with growing your business.
If your business has more complex needs or requires higher limits, Zoho also offers the Professional (£24 per month +VAT) and Premium (£30 per month +VAT) plans.
You can see how all four Zoho Books plans stack up below:3 out of 4
- backward
- forward
| Plan | Cost | Features | |
|---|---|---|---|
| Free | Standard | Professional | Premium |
| Free | £12 a month (excl. VAT) | £24 per month (excl. VAT) | £30 per month (excl. VAT) |
| Manage up to 1,000 invoices per yearMTD VAT filingExpenses & mileage tracking | Manage up to 5,000 invoicesAutomatically import transactionsAdd recurring expenses | Bill managementMulti-currency handlingRetainer invoices | Track activity across multiple branchesCustom domainCustom reports |
What support does Zoho Books offer?
On the Free plan, Zoho gives support via email, while its paid plans add assistance via voice and chat.
Zoho Books Verdict
With loads of powerful features and a great interface, Zoho Books Free is the perfect free accounting software for businesses just starting out. The integrations with Zoho’s other leading business apps are the icing on the cake, but SMEs who are serious about growth should consider going for a paid Zoho plan.
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.
Bokio Accounting Software
We have recommended Bokio accounting software, due to being free. Bokio has announced that in 2022 they will start to introduce payment plans. Some of the biggest changes are that the free plan will not include adding a logo and colour to invoices, invoice reports, accepting card payments with Stripe and no quotes. Although Bokio is worth a look it is worth comparing to the alternatives.
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.
Conclusion
Profitability is a key metric for any successful business, but how do you measure profitability? For small businesses, two key factors are important – revenue and expenses. It stands to reason that fewer expenses means more profit; therefore, bookkeeping software is an essential tool in the life of any small business.