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Compare Accounting Software

Sage Accounting
  • Monthly Fee
    From £12
  • Free Trial
    90 Days
More Info
Xero Accounting
  • Monthly Fee
    From £10
  • Free Trial
    30 Days
More Info
QuickBooks Accounting
  • Monthly Fee
    From £4
  • Free Trial
    60 Days
More Info
Coconut Accounting
  • Monthly Fee
  • Free Trial
    30 Days
More Info
FreeAgent Accounting
  • Monthly Fee
  • Free Trial
    30 Days
More Info

10 Best Accounting Software in 2023

Editorial Team

Your business can benefit from accounting software even if you already have an accountant. Many accounting tools automate time-consuming tasks such as issuing invoices, reporting expenses and tracking profit, tax and VAT.

Find the best accounting software with our guide to the UK's top accounting solutions for small businesses.

Sage Accounting

Here are some of the best features of Sage's accounting software:

  • 3 months free trial offered
  • 3 months free AutoEnty receipt management
  • Unlimited users can access
  • Online tax returns
  • Automatic bank reconciliation
  • Print or email employee payslips
  • Forecast cashflow
  • Create, send & track invoices

Sage Accounting offers a UK leading cloud-based accounting software that comes with the optional add-on of payroll in one, helping small businesses take control of their finances and grow. There are three zero-contract plans to choose from: Sage Accounting Start, Accounting Standard and Accounting Plus. All plans come with a free three month trial so you can try before you fully commit.

Sage's accounting solution comes with three months free with their receipt management partner, AutoEntry, good for unlimited expense receipt uploads. Businesses will benefit from many automated features, including invoice tracking and bank reconciliation. Forecast your cashflow to stop any nasty surprises.

Sage AccountingWebsite


Here are some of the best features of Xero’s accounting software:

  • Free £50 shopping voucher on signup
  • Making Tax Digital compatible
  • Simple expense management
  • Connect your bank accounts
  • Multi-currency accounting
  • HMRC-recognised payroll
  • Track & pay bills in real-time
  • 24/7 online support

Xero is a popular accounting software that was founded back in 2006, specifically designed for small businesses, accountants and bookkeepers alike.. They are one of the fasted expanding software as a service (SaaS) providers, with more than 2.7 million users worldwide. Xero offer three plans: their Starter, Standard and Premium plans with additional, optional add-ons. All new customers will receive a £50 voucher, eligible at a number of shops.

Xero's smart accounting allows businesses to automate many daily tasks, including bank reconciliation through connecting your business bank accounts for detailed financial reporting. Xero also offer a convenient online filing system to help you keep all your important files organised and it will even automatically categorise all of your transactions, matching them with the relevant uploaded receipt.

Xero AccountingWebsite


Here are some of the best features of FreshBook's accounting software:

  • 50% off for 3 months
  • Send unlimited invoices
  • Automatic late payment reminders
  • No limit to estimates & proposals
  • Online VAT returns
  • Detailed sales tax reports
  • Helpful business health reports
  • Track profitability of projects

FreshBooks offer an HMRC-approved cloud accounting software to small businesses and sole traders. FreshBooks was started in 2003 and has since had over 24 million people use their services. There are multiple plans available and they all benefit from a limited offer of 50% off for your first three months: FreshBook Lite, Plus, Premium and then a custom, pay-as-you-go plan.

FreshBooks accounting software allows business owners to spend more time on their business thanks to clever automated features, including digital VAT and tax returns. They offer simplified invoicing with no limit to how many invoices you can send (varies by plan) and automatically send reminders or charge fees on late payments.

FreshBooks AccountingWebsite


Here are some of the best features of QuickBook's accounting software:

  • Save 50% for 4 months
  • Free UK phone support
  • Import all your transactions in real-time
  • Connect bank accounts
  • Multi-currency accounting
  • Online VAT submission
  • Automatically track mileage with your mobile
  • Multi-user access available

QuickBooks is committed to helping businesses, small, medium and self-employed, thrive with their smart accounting solution. They have a number of plans depending whether your business is registered or you're a sole trader. The plans for companies include: the Simple Start, Essentials and Plus plans. All benefit from a 50% saving for the first four months.

QuickBooks' solution gives businesses the ability to perform a myriad of accountancy-specific tasks with complete ease. From sending custom invoices to tracking time or car mileage all through their app. You can even connect multiple accounts for real-time transaction reporting.

QuickBooks AccountingWebsite


Here are some of the best features of FreeAgent's accounting software:

  • 30 day free trial offered
  • 50% off for 6 months
  • Automatic real-time business reports
  • Track & chase recurring invoices
  • Time-tracking software
  • Online VAT filling
  • Effortless expense & mileage recording
  • Connect your bank account & with HMRC

FreeAgent offers an award-winning accounting software designed perfectly for small businesses. FreeAgent has plans based on your business type, one for limited companies, another for partnerships and one for sole traders. FreeAgent is free for businesses that bank with NatWest, Royal Bank of Scotland or Ulster Bank. The first six months are half price for all plans.

You can connect directly with HMRC as well as linking your business bank accounts to enable automated processes involving your bank transaction history. Businesses can easily track time and mileage with in-app tools, helping you make more accurate accounting decisions.

FreeAgent AccountingWebsite

Clear Books

Here are some of the best features of Clear Book's accounting software:

  • 30 day free trial offered (including payroll)
  • 20% off when you pay for 2 years
  • Track VAT & file tax returns online
  • Works well with a Revolut Business account
  • Multi-currency accounting
  • Track & record car mileage
  • Custom invoices & payment reminders
  • Customer support via phone or email

Clear Books offers small businesses a user-friendly online accounting and bookkeeping software. Clear Books were founded in 2008 and started on the values of offering a clear and simple solution, delivered with passion and kindness. Their are two plans available, one for small businesses and the other for HMRC-recognised large businesses.

With Clear Books businesses can expect to make the most of their numerous smart features, such as automated bank transaction reconciliation, three-step Making Tax Digital VAT returns and invoice status tracking and late payment chasing.

Clear Books AccountingWebsite


Here are some of the best features of Coconut's accounting software:

  • Instant payment notifications
  • Digital receipt capture
  • Tax estimates
  • Set aside money with dedicated tax vault
  • Free Coconut Accountant Portal
  • In-app real-time support
  • Account opened within minutes
  • Expense & invoice tracking

Coconut is a digital accountancy solution, specifically for sole traders, with a modern approach of integrating banking and accounting in a nutshell. Coconut offers two plans: their Side Hustle plan for £3.60 each month and their Professional plan for £12 per month. Both packages come inclusive of VAT.

Coconut customers can share business records to their accountants in real-time for free through the Coconut Accountant portal. The app will enable you to track expenses with receipt capture for expense claims, along with monitoring and reporting accruing taxes. The app also offers management of invoices by automatically matching payments to the invoice instantly.

Coconut AccountingWebsite

Zoho Books

Here are some of the best features of Zoho's accounting software:

  • Save by paying annually
  • Multi-user & accountant access
  • Brexit ready
  • Automate payment reminders
  • Expense & mileage tracking
  • Connect multiple bank or credit card accounts
  • Integrates with Uber or Zendesk
  • Email, voice & chat support

Zoho Books is an online accounting software meant to automated busy business workflows. There are a number of Zoho Books accounts: they offer a free plan - for businesses with an annual revenue of less than £35,000 and then their Standard, Professional and Premium plans. Paying yearly could save you nearly 20% per year.

Zoho's accounting software accommodates for multiple team and accountant users with clear, predefined user roles. Many of the daily accounting tasks can be automated, such as payment reminders, expense organisation and mileage tracking.

Zoho AccountingWebsite


Here are some of the best features of Pandle's accounting software:

  • Free accounting plan available
  • 14 day free trail offered
  • Automatically connect bank accounts
  • Calculate, complete & submit VAT returns
  • Unlimited user access
  • Multi-currency accounting
  • Automate recurring transactions
  • Live chat customer support

Pandle offers a time-saving, intuitive cloud accounting software to UK businesses. They want to provide a refreshing approach to accounting, as well as making everything as easy as possible for you. Pandle offers a free and paid plan with the only difference being that customers can only automate their day-to-day tasks with Pandle Pro, the paid account.

Pandle gives businesses a number of accounting features that can help with the company's bookkeeping. As well as an unlimited number of user accounts and fully customisable reports including profit and loss and cashflow forecasting.

Pandle AccountingWebsite


Here are some of the best features of Bokio's accounting software:

  • Free accounting software
  • Track invoices with status notifications
  • No limit to the number of users
  • Send unlimited invoices
  • Online VAT returns
  • Automated detailed reports
  • Manage & record business expenses
  • Connect your bank accounts

Bokio was founded in Sweden and offers a smart, cloud-based accounting software to the UK. Made to make bookkeeping simple and easy Bokio is free for accountants, small businesses and those that are self employed. They offer additional resources such as a free VAT calculator and invoice templates.

Connecting your business bank account with Bokio's accounting software enables businesses to manage their accounting and bookkeeping with relative ease. Customers can track the statuses of invoices, with no limits on the number you can issue within a given month.

Bokio AccountingWebsite

What is accounting software?

Accounting software enables business owners, accountants and bookkeepers to easily manage all of their business transactions by simply connecting their business bank account or credit cards.

There are many different processes accounting software can help with, things like bookkeeping, taxes and VAT, invoicing, mileage tracking, and payroll.

What accounting software provides is a solution that can automate many of the day-to-day tasks that accounting professionals and small business owners previously would have had to do manually.

Tasks like matching receipts to transactions, organising accounts, sending invoice reminders or chasing late payments, calculating tax amounts, and even creating useful reports and projections.

What is cloud based accounting software?

Cloud based accounting software is an online alternative to traditional accounting software where account access is limited to a single computer or network.

Cloud accounting enables businesses to manage their accounts from any device or anywhere with an internet connection and tends to be much cheaper than traditional accounting solutions.

Can I get free accounting software for my business?

A number of accounting software providers offer free solutions, some are offered free with business bank accounts, others based on yearly revenue and some, like Wave Accounting or Bokio, are completely free.

Most accounting software providers offer free trials or reduced monthly costs (resulting in one or two months free) to new customers so be sure to check regularly.

Frequently asked questions

It's not uncommon to have questions when looking in to business cards, especially for the first time. These are some of the most relevant questions for accounting software:

Making Tax Digital for VAT is compulsory for VAT-registered businesses and organisations that have a taxable annual turnover above £85,000. It will also be compulsory for registered businesses that earn below the threshold from April 2022. There are exceptions for unincorporated businesses and landlords that generate turnover less than £10,000 per year.

Chances are if you're using an online accounting software solution then it is compatible with the Making Tax Digital guidelines. Most of the providers we've included are MTD-ready.

Making Tax Digital (MTD) is a government initiative to make tax and VAT processes easier for UK businesses or individuals and is part of HMRC's plans to become more digital with less admin.

VAT-registered businesses that earn over the VAT threshold are required to keep digital records of VAT and submit their VAT returns online.

Making Tax Digital for income tax will require self-employed businesses and landlords, that earn over £10,000 from their business, to record their taxes online from April 2023.