Last updated on March 7th, 2023 at 12:43 am
There are a lot of different accounting software options on the market these days, and it can be tough to decide which one is right for your business and the laws pertaining to your country. In this roundup post, we will take a look at some of the most popular accounting software in the UK and compare their features, pricing, pros and cons.
We will also explore what accounting software is and how it can benefit businesses. So whether you are looking for the best free accounting software or the best b2b accounting software, read on for our insights!
FreeAgent is one of the most popular accounting small business accounting software options in the UK. It offers a wide range of features including invoicing, expense tracking, project management, and bank reconciliation.
FreeAgent also has a strong focus on helping businesses stay compliant with HMRC regulations.
- Estimates and invoices.
- Upload receipts by just taking a photo of it.
- Time tracking.
- Cash flow monitoring.
- Import transactions with bank connection.
- VAT filing.
For UK businesses, there are pricing tiers for sole proprietors, partnerships and companies. You can choose to pay either monthly or annually.
Good news for those of you who have business accounts with NatWest, Royal Bank of Scotland, and Ulster Bank NI, if you decide to sign up, it’s free!
- Free version, with caveats.
- Secure data through GDPR guidelines.
- Excellent customer support.
- A global software, not just for UK companies.
- Bank feeds can be a bit slow
- There have been issues regarding workaround with international clients.
Crunch is a cloud accounting software that’s both powerful and easy to use. It has an intuitive interface and straightforward features. Crunch is perfect for small business owners and solopreneurs who want to save time and money on their bookkeeping.
Because it’s cloud based, you can access your financial information from anywhere, at any time.
Crunch is also customizable in their software packages, you can add bookkeeping, payroll, CIS, and pension auto-enrollment if you wish.
In addition, Crunch offers free package, so you can try it out before committing to an upgrade. (A few add-ons come at a small price, like the VAT add-on.)
- Basic accounting
- Invoice creation
- Expense tracking
- Bank reconciliation
- Snap app for taking pictures of invoices
- HMRC registration
Like FreeAgent, Crunch’s pricing is based on whether you are a solo, partner or a business.
- Excellent support.
- Corporation tax prepared by Crunch tax accountants.
- User friendly.
- Small learning curve.
- Reconciling bank accounts by .csv file may be a little buggy.
- No iPhone app.
As mentioned in my previous article, Quickbooks is one of the most popular cloud-based accounting software solutions and bookkeeping software for small businesses and freelancers.
With QuickBooks, you can manage your financial data, send invoices, track time and expenses, and work with payroll. The software is simple to use and offers a wide range of features to help you run your business smoothly.
- 30 day free trial
- Activity Dashboard
- Automatic Billing
- Receipt Capture
- Data Import/Export
- Mileage Tracking
- Auto-tracking of income and expenses
- Bill and Invoice Management
- Credit card and ACH payment processing
- Payroll Management
- Report Generation
- Sales Tax Management
- Third Party Integrations
- Time Tracking
Quickbooks UK offers two different tiers of pricing. At the time of this article being written (4/17/22) there is a 50 percent discount for the Simple Start plan for 6 months.
- Easy to use.
- Mistakes can be easily edited instead of total book deletion and rebuilding.
- Excellent customer support.
- Pricing may be prohibitive.
- Some issues with payroll services can only be rectified by contacting customer support.
- The online version of Quickbooks has a learning curve as it is different from the desktop version.
Freshbooks is a very popular all-in-one accounting software solution for small businesses and freelancers. With Freshbooks, you can manage your finances, send invoices, track time and expenses, and accept payments online. The software is simple to use and offers a wide range of features to help you run your business smoothly.
- Multi-language invoices
- Invoicing — customizable and with payment reminders and automatic late fees.
- Accept e-signatures
- Unlimited Time Tracking — with logging hours, daily breakdowns, and billing for tracked hours.
- ACH Payment Processing, in addition to online credit card payments, ACH bank transfers (US only,) and subscription-based payments.
- Bank Reconciliation.
- Mobile support through iPhone and Android.
- Calendar Management.
- Data Import/Export.
- Due Dates.
Freshbooks’ pricing in this image is based on annual payment in GBP. There are four packages to choose from — Lite, Plus, Premium and Select.
- Simple to use interface.
- Free trial.
- Ease of use.
- Limited Number of invoicing templates
- Lack of multicurrency support.
- Pricing can be costly.
Zoho Books is a popular cloud based software for all kinds of businesses. It offers automation that can do away with tedious tasks and can save a business owner a lot of time by eliminating bookkeeping work.
Also, recurring transactions can be connected to bank feeds, which can be fetched daily in real-time and later categorized. It can also prepare HMRC compliant VAT Return reports for your business based on sales and purchase transactions.
In addition, it can be integrated with Avalara, Zendesk, Office 365, GSuite, Zapier, Dropbox, and many more.
- Online/Offline Payments
- Multi-lingual Invoicing
- Expenses & Mileage Tracking
- Chart of Accounts & Sub-accounts
- Track Project Expenses
- Bulk Updates
- Track Sales Tax
- Multi currency Handling
- Automatic Exchange Rates
- Currency Adjustments
- Stock Tracking
- Journal Templates
- Recurring Journals
- Custom Domain
- Up to 200 Workflow Rules
- Custom Reports
- Available in multiple languages
- A free version if your business earns less than $50,000 per year.
- Email, voice, and chat support.
- Mobile app needs improvement.
Sage is one of the most popular accounting cloud based software options on the market. It offers a comprehensive suite of features that can meet the needs of any business, large or small — invoicing, tracking expenses, managing payroll, and preparing tax returns.
Best of all, Sage is easy to use, even for those who are not accounting experts. With its user-friendly interface and step-by-step tutorials, Sage makes it simple to get started and begin getting the most out of your accounting software.
- Create and send invoices
- Track what you’re owed
- Automatic bank reconciliation
- Snap and post receipts
- Send quotes and estimates
- Forecast cash flow
- Manage purchase invoices
At the time of this article Sage is offering 3 months free regardless of which package you choose. If the offer has expired, expect to pay anywhere from 36-99 GBP monthly.
- Robust functionality.
- Easy setup.
- 24/7 support.
- iPhone and Android compatible.
- Possible slowness if there is a weak internet connection.
- Online support a bit lacking.
Xero is a cloud-based accounting software that can enable a small company to handle its finances from anywhere and interact with over 1,000 third-party apps. It’s less expensive and doesn’t charge extra for additional users, making it a cost-effective choice for growing businesses.
- Invoices and quotes
- Submit VAT returns to HMRC
- CIS calculations and reports
- Bank transaction reconciliation
- Capture bills and receipts with Hubdoc
- Bulk transaction reconciliation
- Multiple currencies accepted
- Reporting and analytics
- All plans support unlimited users.
- All plans include basic inventory management.
- Ease of use in tracking and submitting invoices
- User interface centralized platform for account information.
- No live phone support.
- Limited customization options.
- Multi-currency only available with the Premium package.
- Some bookkeepers may find it easier to do manual reporting in Excel than Xero.
KashFlow is a small business accounting software that enables users to manage their finances with ease. Specially designed for small businesses and freelance professionals, it offers a variety of features that make bookkeeping simple and straightforward.
KashFlow makes it easy to track income and expenses, generate invoices, and reconcile bank statements. The software also includes powerful reporting tools that help users to stay on top of their financial situation.
In addition, KashFlow is available at a very affordable price, making it an excellent value for money.
- Send unlimited quotes & invoices
- Reconcile unlimited bank transactions
- Manage and submit VAT online
- Bank Feeds
- Get paid faster with KashFlow Payments
- Free Mobile App
- Access to over 50 reports
- Customisable dashboard
- Manage purchases & expenses
- Track Mileage
- Repeat invoices & purchases
- Payroll up to 5 employee
- Limited integrations.
- No mobile or Mac versions.
Clearbooks is a cloud based accounting solution that is both professional and user-friendly. Created by accountants, Clearbooks is designed to save you time and make your life easier.
With its simple interface, Clearbooks is easy to use, even if you’re not an accountant. And because it’s cloud based, you can access your accounts from anywhere in the world.
Clearbooks also offers a wide range of features, including invoicing, expense tracking, and reporting. Plus, Clearbooks integrates with other business software, so you can manage all your business operations in one place.
- Invoice/quote creator
- Bill & receipt tracking
- Bank feeds and uploads
- Reports (e.g. P&L)
- Dividends tool
- Project accounting
- Making Tax Digital VAT reporting
- Multi-currency support
- Free trial.
- Unlimited users.
- Ease of use.
- Great value for money.
- Possible difficulties applying refunds and credits to the system.
- Cannot be used for large banking transactions.
- Customer service slowness.
All of the software mentioned in this article rank among the most used in the UK.
The most popular one is Sage 50, as it was made in the UK for UK bookkeepers and accountants.
So, there you have it – our top nine picks for the best B2B accounting software for UK businesses. Of course, every business is different and you need to find your own software solution to suit your needs.
Whether or not you are self-employed, a small business owner, or large company, there is the best accounting software out there for you. With all the free trials, there are plenty of opportunities to play around and find the right accounting software for you.
We would love to hear about your experiences with these or other accounting software in the comments below. Have you found a solution that works especially well for your company? Let us know what it is and why you think it’s the best!
Dani Lehmer is the Founder and Head Honcho of Dani Digs In.
She is a Quality Assurance Analyst and blogger whose natural curiosity allows her
to dig in (pun intended) to help people build their businesses and satiate curiosity
in regard to data science, analysis, and crypto.