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Best Small Business Accounting Software UK

Software Accounting

The best small business accounting software for UK businesses should offer a range of features such as basic bookkeeping, invoicing, payroll management and reporting options. Accounting software can help businesses manage customer accounts, track sales, and generate financial reports. Small business owners in the UK are increasingly turning to accounting software for their business needs. 

What Accounting Software is Available for a Small Business?

When starting a small business, getting all the moving parts working optimally and efficiently can be stressful. In our modern age, there are several technological advances, including cloud-based programmes, that can help small business owners set up and organise different aspects of their business while it grows and prospers. 

One of the main parts of running said business is keeping up with the accounting and bookkeeping as it shows how well the company is doing financially, it sets up payroll for any employees, and it keeps on top of any expenses for the tax return at the end of the business year. 

When selecting a small business accounting software, several factors must be considered before choosing the correct one. These factors include the monthly cost, how easily the software will integrate into the business's day-to-day operations, how accurate their reporting is, the features within the software's different plans and how good its technical support is.

Accounting Software

Monthly Cost

Free Trial


Business SIze

Customer Support


Plans start from £10 per month

Yes – 30-day free trial





Plans start from £7 per month

Yes – 30-day free trial


Small- Medium



Plans start from £12 per month

Yes – 30-day free trial

Very Easy


Very Good

Sage Accounting

Plans start from £12 per month

Yes – 30-day free trial

Very Easy

Small- Medium

Very good


Plans vary in price depending on what the company is looking for

The invoicing and accounting sections are free, and they offer a 30-day free trial for there payroll section


Sole Trader- Small


There are several excellent small business accounting software options in the UK, including QuickBooks, Xero, FreshBooks, Sage Accounting and Wave, to name a few. They will compile all your accounting information into one secure place with two-factor authorization, categorize it accordingly and make accounting reports when needed. One of the UK's most popular accounting and bookkeeping software is QuickBooks Online, as it gives its subscribers an extensive range of easy-to-use features. 

Is QuickBooks Good for Very Small Businesses?

QuickBooks is an excellent choice for small businesses as it has many features that are easily accessed and gives a real-time overview of the company's finances through one central dashboard.

This software will make bookkeeping and accounting easy and efficient. It is scalable as the business grows, cloud-based and has a mobile app, all of which makes real-time access to the small business finances more accurate. 

A small business would be very capable of completing its own accounts and bookkeeping if it used an accounting platform like QuickBooks to help them get its tax return filled and profits accounted for. QuickBooks Online is one of the top cloud-based accounting platforms in the world. It contains various features that can be automated, and several different reports can be generated instantly once all relevant financial information is entered. It takes the work out of accountancy for small businesses. 

Is QuickBooks Good for Self-Employed UK?

QuickBooks is excellent for self-employed businesses, especially if you are not registered for VAT and use cash accounting; then, this software will elevate your small business. It is something that all small businesses should think about implementing as you can automate certain elements making the accounting side of running a business less laborious. There are over 66,202 companies using QuickBooks worldwide; of these companies, 21,803 QuickBooks users are in the UK. 

Is QuickBooks UK Free?

While QuickBooks does not have a free pared-down version like many other accountancy software, it does have a 30-day free trial period so that you can sample the accounting software and determine if it fits your business.

QuickBooks offer its users several different subscriptions that range in price. The plans are simple Start, Essentials, Plus and Advanced, and they are £10 per month to £70, depending on which you select. Each plan offers more advanced features than the last, with features like inventory management, time taking and payroll, to name a few. 

Simple Start has all the basic needs of a small business, and the essential plan contains extra features for bill and time management. The Plus plan has more inventory and customization features, while the Advanced plan includes expense management, a premium app and a dedicated account team. The platform integrates with other apps, such as PayPal and Stripe, for each account management. 

Does HMRC accept QuickBooks?

The HMRC does recognise QuickBooks as an accountancy software, and by using this software, any small business will be ready to file their tax return to the HMRC confidently.

Sole traders and small business could easily complete their own tax returns using QuickBooks, but it is always worth running the final reports past an accountant to ensure that everything is correct from an expert. 

What is the Disadvantage of QuickBooks?

The disadvantage of QuickBooks is that if the small company does expand and more users are required to use the software to keep any accounting up to date, then an upgrade in the user plan is needed, which also means it will be more expensive.

Also, they have occasional problems syncing with banks and credit cards, which is a small price to pay for such an intuitive software package. 

Business owners who are beginners at business accounts may have trouble navigating the software as there is so much one can do with it. Still, QuickBooks have endless online training resources and forums to get any support or troubleshooting needed.

QuickBooks Online is the perfect addition to any small business or sole trader as it keeps all your sensitive financial information in one secure place. It has various innovative features to streamline and keep any business financials organized. 

Is Xero Used in the UK?

Yes, Xero is the leading cloud-accounting software in the United Kingdom, with over 23,675 companies using the popular software.

It is a cost-effective, easy-to-use accounting platform that many small businesses can utilise. It gives small businesses instant visibility of their financial landscape with real-time bank synchronisation. It provides the company with unlimited users, an intuitive app and three different pricing plans depending on what the business needs. It has a 30-day free trial, so small businesses can try the software before committing to one of their excellent plans. Xero accounting software is an alternative to QuickBooks.

It provides companies with many functional features that make bookkeeping and accounting stress-free and less time-consuming. Some of its excellent features include configurable reports, simple budgeting and consolidating all your information, whether from your bank or another accounting software like QuickBooks. 

While on first look, users may be pleased with this accounting software, there are some limitations that subscribers should be aware of. Its low-cost, basic plan will only allow five invoices and five bills to be generated monthly and reconcile 20 bank transactions. While this is fine for a sole trader or a new small business just starting out, most businesses will grow out of these transactions very quickly. Also, it needs to be combined with another software like Gusto for payroll options which will increase businesses' monthly fees. But moving from the basic plan to the Xero growing plan basically eliminates these issues.

Also, Xero's customer service is more of a self-help database than talking to a customer service representative. While this isn't a problem for everyone, if you do not like figuring out technical issues independently, Xero may be at a disadvantage compared to other accounting software packages. 

Overall, it is an excellent option for small businesses that need accounting software that is easy to use and something you can get started with quickly.

There are several accounting software programmes that can be used for businesses starting sole traders and established small businesses. Both QuickBooks and Xero are uber-popular, efficient and reliable options for any small business. 

Unlike other accounting software, QuickBooks can be used for various business sizes and has four different plans to suit sole traders as well as businesses with fifty employees. It is the accounting option that can grow with your small business. Xero accounting software is perfect for businesses starting out and needing a simple, straightforward accounting system. For a higher payment every month, this small business accounting software with grow with your company as you expand. 

Depending on your small business's size and what you are looking for from your accounting software, both options will optimise and streamline your company's finances.

Clinked's client portal solution is often used alongside QuickBooks, Xero and other small business accounting software in the UK and elsewhere. Clinked takes care of the things that accounting software does not.

white label client portal app

For instance, keeping all your client files organised in a dedicated client sub-portal, being able to request documents and signatures from clients, being able to securely chat with clients in real time and in a forum (Discussions in Clinked), and much more! Check you what Clinked can do for your business, book a demo.

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