As your business grows, your accounting needs will increase. This is where small business accounting software for UK comes in. You’ll find that there are many different packages that fall into this category. However, it’s also true that all the options online aren’t created equal.
If you’re a business owner looking to learn about the best accounting software for your business, there’s a high chance you’ve already looked around and tried multiple solutions. One of the main reasons is that no single solution can handle all your business needs. There are many different things to consider when choosing the right accounting system for your small businesses UK. A good accounting software does more than managing bank accounts and payroll. It helps you keep track of all your day-to-day tasks, organize finances, stay on top of your spending and other related matters that help your business run smoothly. If you’re interested in finding out what other features you should pay attention to, check out this article where I share all
FreeAgent
FreeAgent is targeted at freelancers and small businesses, so it focuses on daily admin tasks like invoicing, time tracking, and expense management. It’s a cloud accounting software package.
You can set invoice reminders and upload pictures of your receipts. Pricing starts at £19 a month (for sole traders) with 50 per cent off for the first six months. Plus, if you’re a Simply Business customer, you can get a 15 per cent lifetime discount. Find out more.
FreeAgent say it’s ready for Making Tax Digital, and has been submitting digital VAT returns to HMRC for customers since 2010.
Xero
Founded in 2006, New Zealand based Xero is a cloud-based online accounting software for small business. As of February 2018, Xero has over 1.8 million subscribers globally, making it as an ideal choice as best accounting software in UK and one of the best online accounting software for small business.
Why Xero is one of the best accounting software in UK
As a cloud-based online accounting software in UK, Xero can easily be accessed from all types of devices with an active internet connection. It is built on a double entry accounting framework and its robust accounting features enables small businesses to view their cash flow, transactions and account details from any location. Bank transactions are all automatically imported and coded by this online accounting software for small business.
Online bill payments help keep track of spending and stay on top of bills due, improving relationships with the suppliers that provide critical business services. It also allows businesses to manage personal expenses with a mobile review and approval process of each receipt. Xero offers unlimited user support and integration with over 600 systems through its add-on marketplace, including Curve, Receipt Bank, and Vend. It also updates its software on a regular basis.
Also, submitting CIS returns from Xero is free until 31 March 2020.
Cons
In some areas, Xero’s accounting features are limited, for example it has only two tracking categories.
For this software, business users pay a subscription amount for the most basic version. In order to access functions such as expanded time tracking and inventory tracking, businesses need to purchase add-ons on top of the subscription. Importing data is free but using payment services like Paypal or Stripe carries a cost.
Also, Payroll, Projects and Expenses are optional extras and not part of any of the pricing plans.
Pricing
The solution comes with a 30-day free trial period for product testing and feature evaluation. It provides three introductory pricing levels that kick in after a 30-day free trial. Xero Starter (£4/month as an introductory pricing, £10/month after the first three months) has monthly limits of five invoices and quotes, five bills, and reconciliation for 20 bank transactions, submitting VAT to HMRC and automatic CIS calculations and reports. The second pricing level, Xero Standard (£8.80/month till 1 August 2019, £9.60/month after 1 August and £24/month after the first three months) adds unlimited billing and invoice functionality, quotes, transaction reconciliations and submitting VAT to HMRC and automatic CIS calculations and reports. Xero Premium (£11/month till 1 August 2019, £12/month after 1 August and £30/month after the first three months) is the only version to offer multiple currency support, and on top of that offers the same capabilities as Xero Standard.
QuickBooks
With over 4.5 million businesses around the world relying on its services, accounting software powerhouse QuickBooks must be doing something right. And, it’s not hard to see why they’re so popular – their plans are loaded with great features and they have some of the most transparent, affordable pricing around.
They’re one of the few providers to offer a dedicated self-employed plan, which costs just £8 per month, and is one of the most affordable plans around. It’s full of powerful functionality too, and saw QuickBooks claim top spot in our list of the best self-employed accounting software.
Small businesses though will want to go for Simple Start – which adds income tax estimates, phone support, and pay-enabled invoices – for just £12 per month for a single user.
The next tier up, Essentials (£20 a month) adds multi-currency support and bill and payment management, and increases the cap to three users. £30 a month gets you Plus – this tier offers more control over your budget, employee time, stock management, and project productivity, with a five user limit.
All plans come with award-winning support, an intuitive mobile app, and over 700 app integrations. And there isn’t a contract in sight.
Sage Business Cloud Accounting
Previously known as Sage One. It’s best suited to start-ups, small businesses, freelancers or anyone who just needs a simple accounting system with invoice, tax assistance, and profit and loss information. It requires very little accounting knowledge and is fairly easy to use.
There is chat, telephone and email support if you need it. Additional support through the Sage Business Community is also available. As of 2021, they now offer over 100+ integrations with various apps to automate your accounting workflow. Something that was previously lacking.
Free 30-day trial without a credit card. For sole traders and small businesses, standard non discounted plans start £12 per month but there is usually always a promotion going on.
It’s also important to note they are fully Making Tax Digital (VAT), RTI, auto-enrolment, GDPR compliant.
FreshBooks
With a focus on easy invoicing, FreshBooks is a good choice for freelancers and small businesses who want to impress their clients – and get paid quickly.
Best for freelancers:
Typically £19 per month | Powerful proposals, invoicing and project management | Go to website
Key benefits:
- produce estimates and proposals from within FreshBooks using built-in tools
- invoice generator for creating customised, professional-looking invoices – with option to build in direct debit or credit card payments
- time-tracking and project management features
Disadvantages:
- entry-level plan limited to five clients and excludes automated bank reconciliation and accountant access
- lacks features for businesses selling physical products (eg manufacturers and retailers) or contractors/subcontractors using the Construction Industry Scheme (CIS)
Pricing:
- £11-£30 per month
- higher cost, customised ‘Select’ package available with advanced payments and other features
Zoho Books
You can integrate Zoho Books with lots of apps from Zoho’s own suite, as well as third-party apps. It can help you issue invoices, sort expenses, and track inventory. Zoho Books is part of an overall suite of cloud-based software – other apps include Zoho Invoice and Zoho Expense, although there isn’t a payroll feature yet for the UK.
Zoho Books can also connect to your bank account for real-time updates on cash flow. Prices start at £10 a month, with the option to have a free trial before you buy. Zoho Books is Making Tax Digital compatible.
Conclusion:
Small business accounting software is the software that helps you in managing your finances. Because every business needs to maintain the financial aspect of it, efficient account handling becomes important. These packages help in maintaining the accounts with ease. They also provide bulletproof services so you can focus more on growing your business. But let’s face it actually getting to know small business accounting packages, is not that easy at all! There are thousands of solutions out there.