To choose the best accounting software for small business uk is not an easy task. You need to consider some factors like demand of accounting services, number of users, banking requirements and other important factors involved in accounting process. But don’t worry; you can make decision after doing some researches. Here are some recommendations of accounting software for UK small businesses.
Why do you need to choose best accounting software for small business uk? You need to to manage your revenues. If you don’t manage your finance it will be difficult to run your company successfully. So, if you have a small business you have to use one of the best free accounting software for small business uk.
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.
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.
FreeAgent
FreeAgent with its clear and uncluttered interface. It is pretty obvious that this has been designed with the average user in mind and it achieves what it needs to do in a simple to understand way. Designed initially for Sole Traders and Contractor Accounting, the simplicity is also its downfall as it lacks functionality to handle more complicated businesses.
FreeAgent is arguably the least featureful of the lot however this probably reflects the fact that it is designed with freelancer accounting in mind.
Few freelancers will need more advanced features such as multi-currency support or departmental tracking and so the lack of different methods is not necessarily a disadvantage.
When you are looking at the features list of your future software, remember to check what is included, only buy things that you need and make sure none of them is volume-limited as you could end up paying more than you bargained for.
FreshBooks
FreshBooks is another great option for UK small businesses – it offers three feature-rich plans at affordable prices and boasts a slick UI that makes doing things like creating invoices and entering payments a breeze.
Its basic plan, Lite, starts at just £11 per month – one of the cheapest plans we came across. And, with unlimited invoices, expense entries, time tracking, and estimates, it’s also one of the most generous… though you’re limited to five billable clients only.
Upgrading to Plus (£19 per month) adds unlimited proposals, and allows you to automate recurring invoices and late payment reminders. It also extends your client limit to 50, though larger businesses will want to look at a Premium plan (£30 per month), which has a capacity of 500 billable clients.
You’ll also need to remember to keep an eye on any costs lurking below the surface. If you’re a sole trader, then FreshBooks is one of the cheaper options out there. However, adding additional team members costs £7 per person, per month – so we don’t recommend it for larger teams. FreshBooks’ more advanced payment features will also incur a fee of £15 per month.
Bokio
Bokio, free accounting software for small businesses, sole traders and freelancers, lets you record receipts and other documents with step-by-step bookkeeping. It also offers unlimited invoicing with an invoice generator, where you can create, send, track and record them all in the same place. Bokio supports employee expenses, automated reporting, and VAT Return for Making Tax Digital is automatically calculated making it really easy to submit to HMRC.
Why Bokio is one of the best accounting software in UK?
Using Bokio means there’s no need to be an expert in accounting to get it done quickly and easily. The software is simple to use by uploading a receipt and AI helps by filling in the amounts, dates and numbers. Bokio is automated, so it reduces errors, saving time and money. Bokio is always working on new features to make the software even better. The software is secure and cloud-based, so it can be used on the go.
Cons:
Currently Bokio is developing support for payroll and live bank feeds.
Pricing:
All the features in Bokio will always be totally free if you do your accounting yourself using the software, with no limitations.
Zoho Books
With a CRM (customer relationship management) tool, email hosting, and project management solutions, Zoho has built a reputation on simple, user-friendly tools for businesses – and its accounting software doesn’t disappoint. There’s even a high quality free Zoho Books plan that’s perfectly respectable for small teams or single-person setups.
Zoho’s free plan is only suitable for very small businesses as it doesn’t offer important features like bank feeds, and only includes email support.
Naturally, the better features come with a price tag attached. Zoho Standard (£12 per month, for three users) allows you to track, reconcile, and budget with ease, from your smartphone or computer. You’ll also be able to stay on top of your projects and timesheets, and manage up to 5,000 invoices.
The next tier, Professional, costs £24 per month, for five users. This adds bills, multi-currency handling, reporting tags, purchase approval, and up to 10 workflow rules.
Zoho’s answer for more established businesses is Premium (£30 per month, for ten users). For the money, you’ll be able to track activity across multiple branches, create custom reports – and get a snazzy custom domain, too.
Adding extra users will set you back £2.50 per user, per month. Auto-scans also need to be purchased in bulk – 50 monthly scans costs £8 per month.
Wave
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.
Cons
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.
Pricing
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.
Conclusion:
There are plenty of options out there when it comes to choosing accountancy software for your small business, but it can be hard to know which one is the best accounting software for your needs. This doesn’t only mean the most popular accounting software companies; it also means smaller more inventive providers too.