Accounting software packages have become an essential tool for all modern businesses, of whatever size and type, and there is now a wide range of vendors to choose from. The key to purchasing a suitable platform is to find the right match to your company’s needs.
To help you with this important investment, check out this list of the top 5 accounting software providers for UK small businesses.
The top 5
Sage
- Dedicated support for small businesses
- 90% off for first 12 months
- MTD compatible and HMRC recognised
Say goodbye to endless admin with Sage Accounting – the HMRC-recognised cloud solution powered by AI automation. Ideal for small businesses that want to save time and manage their finances from anywhere.
Starts from £18 per month (not including discount).
Moss
- Automated accounting
- Over 100 integrations
- Streamline your workflows
Simplify your workflows, stay on top of your books, and close each month on schedule — all by seamlessly integrating Moss with your existing systems and tools.
Prices on request
Xero
- 24/7 support
- Automatic CIS reports
- 90% off for six months
Handle bills, track expenses, reclaim VAT — all from Xero’s intuitive, streamlined interface. With clear dashboards and fluid, dynamic graphs, managing your finances is a pleasure not a chore.
Starts from £16 per month (not including discount).
Tide
- Automated profitability insights
- Automate your bookkeeping and daily admin
- File your VAT return with HMRC
Tide provides everything you need to manage your finances in one place. Connected directly to your Tide business account, it’s easy to submit returns, generate reports and manage your daily admin.
Stars from £5.99 per month.
FreshBooks
- Intuitive user experience
- Send unlimited quotes and invoices
- Automated banking and tax support
Freshbooks accounting software is very feature rich, allowing you to manage all your bookkeeping and client needs, with unlimited quotes and invoices, even on the most basic plan.
Starts from £7.50 per month.
How is this top 5 composed?
These accounting software providers are selected based on the business type for which they were developed, (expert) reviews and the possibilities and functions.
Important functions include pending payment reminders, linking with the Tax Authorities (for electronic VAT and IB returns), the use of mobile apps for submitting receipts and other documents, and time registration.
Choice for accounting software providers: what should I take into account?
The range of accounting software providers is wide. How do you make a wise choice? There are a number of things that you have to take into account when choosing.
1. Your business form
Accounting programs aim for specific business forms. Some are more suited for self employed people and some are better for those handling more complex financial challenges for bigger companies. So look for software suppliers that have a broad customer base within your business form.
2. Number of billable clients
Take a good look at the number of billable clients that can be used within the program. With a number of providers this is limited and you have to pay more if you want to send more.
3. Your budget
Usually you pay about 10 to 20 euros per month for a good accounting program. For a complex administration in which, for example, you also do stock management and have a lot of depreciation, you can look at an SME accounting program.
4. Integration with other software
Do you also use software for, for example, payments on your website or do you keep track of your customer contacts in a CRM package? If so, see if a link is possible. That makes it much more convenient.
Important functions
In addition to the above, you can select an accounting program based on the functions that are important to you. For example, think of:
- Bank link (for importing bank statements and linking to, for example, outstanding invoices)
- Sending payment reminders
- Link with the Tax Authorities (for electronic VAT and IB returns)
- Mobile app for submitting receipts and other documents
- Time registration (pay attention to how many ‘hour lines’ you can save
- Journey registration
- Profit and loss account
- Create quotations and convert them to invoices
Further Resources
Best accounting software if you’re a sole trader – what’s available on the market right now for the self-employed or smaller UK business.
The best accounting software for medium sized businesses – A look at accounts platforms suitable for UK-based mid-sized businesses.
9 myths about Making Tax Digital busted – An article to help clear up any remaining confusion about MTD.