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Best Accounting Software for Small Limited Company Uk

I have noticed that many online users ask this question: what is the best accounting software for small limited company uk? or where I can find best accounting software for small limited company uk? You can get more details about best accounting software for small limited company uk. There are several companies offering accounting software out there. However, not all of them are suitable for your small business. If you want to get the best accounting software for your limited company, you should do some homework first. What makes this process a little more complicated is, the needs of a single business vary from one to another. So, you need to understand what your business needs in order to choose an accounting software that is tailored to these needs.

The best accounting software for your small company can help you manage your finances and make reporting easier. There are many accounting software options for small business, but the right choice depends on your organization’s needs.


QuickBooks is developed by Intuit, one of the very earliest providers of accounting software, and it’s cloud-based.

Freelancers can sign up for the basic Self Assessment package that helps you track your self-employed income, while small businesses can use it for things like VAT and payroll. There are lots of reporting and monitoring tools too. You can connect your account with over 700 third party applications through the QuickBooks App Store – this lets you reduce time spent on data entry, payroll processing, capturing backups and tracking inventory. Subscription prices start at £8 a month (for the Self Assessment package) – but prices are sometimes reduced for the first six months.

For small businesses and VAT-registered companies who want to use the accounting and VAT features, prices start at £12 a month. These are the packages that are ready for Making Tax Digital.

Why Intuit QuickBooks is one of the best accounting software in UK

One of the best aspects about QuickBooks is that this online accounting software continues to be updated on a regular basis. One of the most recent updates the software received was the project management feature. The online accounting software also provides users with many features that other traditional locally installed software does not provide. These features include automatic sales receipts, split transactions, scheduled invoices, and location and class categories.


Quickbooks, which is generally a feature-rich, high-quality software, does have disadvantages as the software’s several customers have flagged that the software still does not compare to its desktop counterpart and can sometimes be complicated and hard to navigate over a period.


Quickbooks currently has three versions of accounting software for small business owners and the newly added Self-Employed plan for freelancers and independent contractors, all of which offer a 30-day free trial. The three versions are applicable for medium business owners. The first plan, Simple Start (£5 per month for six months), allows businesses to track income and expenses, track and e-File VAT to HMRC for MTD, send unlimited invoices, chase late payments, snap & store receipts, connect multiple bank accounts, run reports, manage CIS transactions, run payroll (+£1 per employee /month), free UK phone support and one user profile. Essentials (£7 per month for six months) provides all the features of the Simple Start plan and additionally provides two more user profiles, managing bills and payments, multi-currency support and tracking employee time. Plus (£11 per month for six months) enables users to create budgets and purchase orders, manage stock and Track project profitability.

The newly introduced Self-Employed (£3 per month for six months) is the most basic plan which only includes track income and expenses, track deductable mileage, send unlimited invoices, snap & store receipts, and connect multiple bank accounts. Additionally, this plan exclusively has the option of having separate business and personal transactions, estimating income tax payments and completing HMRC self-assessment.

What’s new

The separate Self-Employed plan for freelancers and independent contractors, which although is basic, but has a few exclusive offerings.


Wave is one of the most successful free online accounting software services. The tool is completely free for accounting, invoicing and receipts; however, businesses are required to pay for payroll and additional personal technical support. Although the software is a little basic for medium-sized businesses, it’s one of the best accounting software for small business, sole traders and freelancers.

The free features that Wave provides are unlimited invoicing, unlimited estimates, contact management, expense tracking, personal accounting, lending and reports.

Why Wave is one of the best accounting software in UK

Wave has rolled out its Android and iPhone apps, and the online accounting software has also included a lending feature, demonstrating that it constantly updates the software to better fit customers’ needs. This online accounting software is one of the easiest accounting software programs to set up. What makes it one of the best accounting software in UK is the fact that the navigation is simple, and overall organisation is intuitive.


Although the software and all its standard features are free, it has additional costs for its payroll and credit card processing features. Also, these two features are only available for users in US and Canada. What’s more, Wave has decided at this time not to build a direct connection from Wave to HMRC for Making Tax Digital (MTD). Instead, it will enable Wave customers to comply by using approved bridging software. The company has also stopped its live bank feeds.


Wave is a free for life software. The online accounting software also does not limit users to the number of invoices, customers or transactions, like other accounting software.


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.

FreeAgent say it’s ready for Making Tax Digital, and has been submitting digital VAT returns to HMRC for customers since 2010.


Xero is another big player in cloud accounting software. Xero can help with invoicing, inventory, payroll, and expense claims.

As well as that, it can import your banking, credit card, and PayPal data, and there’s an app that works on both iPhone and Android. Prices start at £10 a month, but this is sometimes reduced for the first few months. That package gives you the ability to submit VAT to HMRC for Making Tax Digital.

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.

Why Zoho Books is one of the best accounting software in UK

The software allows businesses to streamline their back-office functions and manage all financial activities from a single hub. This also allows businesses to access unrestricted payments from all locations, receiving timely payment requests and reminders on recurrent bills, and even auto-charge options. On Zoho Books, businesses can also adjust the finance management to their project structure and manage all tasks and projects from any device. One of the aspects that helps in featuring this online accounting software as one of the best accounting software in UK is that Zoho Books guarantees that all work and projects are completed and monitored during and after office hours as well.


User-access permissions cannot be established down to the screen and activity level. The software’s report customisation is also quite weak, and it does not have payroll integration. Some features, such as contact and item records, transactions, inventory and project management, customisability (except for reports), automation, and user interface/navigation are some of the best among online accounting software tools.


The online accounting software tool currently offers a 14-day free trial, following which users can subscribe to the tool. The available plans are the basic plan, standard plan and professional plan. The plan, costing £9, limits users to 50 contacts, one user plus an accountant, and five automated workflows. The supported features include invoices, expense-tracking, projects, and timesheets. The standard plan, which costs £19 per organisation per month, provides businesses with higher limits on all features that are present in basic. It also additionally adds bills, vendor credits, and reporting tags features. The professional plan offers unlimited contacts and users, and 10 automated workflows per module, in addition to purchase orders, sales orders, and inventory tracking. It costs £29 per organisation per month.

What’s new

New User Interface, Navigation, and Help sections.


Benefits of cloud-based FreshBooks include the user-friendly interface and lack of jargon. It’s designed for freelancers and small businesses with basic accounting needs, so it focuses on things like invoicing and expense tracking. It integrates with apps like PayPal and Zendesk.

FreshBooks starts at £11 a month for its ‘Lite’ package, although this is sometimes reduced for the first three months. It also offers a free trial, so you can see if it’s right for you. FreshBooks says its packages have everything you need to stay compliant with Making Tax Digital, so check it suits your needs.

Sage Business Cloud Accounting

Sage is a big enterprise software provider, but Sage Business Cloud Accounting is its cloud accounting software offering for small businesses. It can help you with everything you’d expect, like invoicing, cashflow, and payroll.

Pricing for Sage Business Cloud Accounting starts at £12 a month, but sometimes this is reduced for the first few months. Sage says it’s ready for Making Tax Digital.


As an entrepreneur, you have to make many decisions when it comes to your business. One of the most important ones you must make is which accounting software you wish to use. So many choices are available that can sometimes cause confusion and unnecessary stress. Whichever accounting software you do decide on, it is imperative that you understand its capabilities and abilities so that your books will be completely accurate.

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