Choosing The Best Accounting Software: Recommendations From UK Small Business Accountants

If you’re self-employed, the best accounting software can greatly simplify your financial management. But how do you choose the best accounting software for Small Business accountants?

After HMRC introduced Digital Tax Preparation in April 2019. It’s more important than ever for businesses to consider the best accounting software. Making a digital tax return means that all VAT-registered businesses (regardless of revenue). Must use compatible software to file their VAT returns.

What Is Business Accounting?

Accounting is a way of measuring, processing and sharing financial information. It can be used both personally and professionally – business accounting is an important part of running a small business.

Accounting is invaluable to businesses because the data it provides can help you make better business decisions. Also known as bookkeeping, small business accountants. Organize your important business information in reports. Making it easy to see where your business is doing well and where it might need improvement.

How To Be An Small Bussiness Accountant

As a small business owner, you may not have a Small Business Accountants or bookkeeper. Fortunately, there are many of the free best accounting software options out there. This guide is intended to help you choose the right one for your business. Use it as a guide – before choosing a plan. Make sure you research and determine if it meets all your business needs.

Business Accounting And Bookkeeping Software

In the past, the best accounting software was complicated. It is usually more suitable for large companies than small ones. Today, there are many small businesses best accounting software designed specifically for the self-employed. Many products are inexpensive (or even completely free).

This type of software is designed to make it easier for you to manage your business finances, assisting you in areas such as accounting, invoicing, purchase orders, account statements, inventory, and payroll. The product you choose will often also include reporting tools, so you can track your cash flow and track your profit and loss, for example.

With Making Tax Digital now in effect, businesses need to make informed choices about the best accounting software they use to keep digital records and file their taxes.

Compare Best Accounting Software For Small Businesses

The large number of programs and providers available can make it difficult to compare business best accounting software, let alone choose the right package for your needs. But we’ve looked at some of the most popular options for your business.

Modern accounting packages tend to be cloud best accounting software, so they should work well whether you’re using a Mac or a PC. Most of these programs are also mobile-friendly.

Most of the paid subscription services mentioned below offer a free trial (usually one month) when you first sign up, so you can try it out to see if it meets your needs. Your own or not. However, if you decide to buy, keep in mind that the prices shown do not usually include VAT.

What Is The Cloud Accounting Software?

Cloud best accounting software is a known best accounting software that is available online (rather than stored locally on your desktop). You just need an internet connection, and you will be able to connect to a secure system using your web browser or application.

Some Of The Benefits Of Using Cloud Best Accounting Software Include:

  1. access your financial data from anywhere
  2. Real-time financial reporting
  3. Easily share updated reports with small business accountants and stakeholders
  4. software packages that include automatic backup, restore, and security updates
  5. secure storage with multi-factor authentication (when two or more verification methods are required to confirm that you are connected)
  6. the ability to connect with other third-party accounting applications for invoicing and cash flow


FreeAgent is aimed at freelancers and Small Business Accountants, so it focuses on everyday administrative tasks like invoicing, time tracking, and expense management. It is the cloud’s best accounting software package.

You can set payment reminders and upload photos of your receipts. Prices start from £19 per month for Sole Traders and £29 per month for LLCs, with a 50% discount for the first six months. FreeAgent says its users can comply with Do Digital Tax and has been submitting digital VAT returns to HMRC for customers since 2010.

Quick Book

QuickBooks is developed by Intuit, one of the leading providers of cloud-based best accounting software.

Freelancers can sign up for a basic self-assessment plan that helps them track their self-employment earnings, while small businesses can use it for things like VAT and payroll. There are also many reporting and tracking tools available. You can connect your account to over 700 third-party apps through the QuickBooks App Store, reducing the time you spend entering data, processing payroll, collecting backups, and tracking. Advertising space.

Subscription prices start at £8 + VAT per month (for a self-assessment plan) – but prices are sometimes discounted for the first six months. For small businesses and VAT-registered companies that want to use VAT and accounting features, prices start from £12 + VAT per month. These are packages compatible with Do Digital Tax.


Another big player in cloud best accounting software is Xero. Xero can help you with invoicing, inventory, payroll, and expense reports.

Best of all, it can import your bank, credit card, and PayPal data and has an app that works on both iPhone and Android. Prices start from £14 per month, but this is sometimes discounted for the first few months. This package gives you the option to submit VAT to HMRC for digital tax performance.

Book of Zoho

You can integrate Zoho Books with a variety of apps from Zoho’s own suite of apps, as well as third-party apps. It can help you issue invoices, organize expenses, and track inventory. Zoho Books is part of a total cloud-based suite – other apps include Zoho Invoice and Zoho Expense, although there is no UK payroll functionality yet. Zoho Books can too interface with your bank account for real-time cash stream upgrades. Costs begin at £10 per month, with a free trial choice sometime recently you purchase. Zoho Books is Charge Advanced consistent.

Modern book

The preferences of cloud-based FreshBooks incorporate a user-friendly and jargon-free interface. It’s outlined for specialists and little businesses with essential bookkeeping needs, so it centers on things like invoicing and cost following. It coordinates with apps like PayPal and Zendesk.

FreshBooks begins at £11 per month for the ‘Lite’ arrange, in spite of the fact that this is often now and then marked down for the primary few months. It, too, offers a free trial, so you’ll see on the off chance that it’s right for you. FreshBooks claims their plans have everything you need to comply with Digital Taxation, so check it out to see if it suits your needs.  \

Free best accounting software for small business

There are also several vendors that offer free online best accounting software for Small Business Accountants, including GnuCash and Wave Accounting. GnuCash is the open-source best accounting software, which means that the underlying code is publicly available and can be shared and modified. You can use it to track inventory, income, and expenses. GnuCash does not support Digital Tax Preparation, but you can use third-party software to submit your tax return. You’ll probably need to do some additional research if you’re considering this option.

Additional services like payroll are billed as you use them with Wave Accounting’s free software. You can use approved ‘bridge software’ to submit VAT returns to HMRC with Wave Accounting.

Visit our cost-of-living hub for free guides and resources to help you manage your business finances.

Which small business’s best accounting software is compatible with Making Tax Digital?

Digital Tax Preparation for VAT means that you have to keep digital records and use Digital Tax preparation-compatible software that allows you to file your VAT returns.

HMRC has a tool on its website that you can use to find compatible software. For each plan we’ve talked about, we’ve covered its compatibility with Making Tax Digital. But make sure to do some research on your own before making your choice.

As of April 2022, Digital Tax Preparation is mandatory for all businesses subject to VAT. It will become mandatory for companies to pay income tax from April 2026.

Some software providers, including QuickBooks and Xero, have dedicated Digital Taxation pages on their websites. They are updated with plans and upgrades. And we will keep you informed of any news from HMRC about the future of Digital Tax Making. Be sure to research all your options before choosing an app for your business and get professional advice if needed.

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