Press Release
BEST ACCOUNTING PACKAGES FOR SMALL BUSINESSES IN THE UK
Managing finances is one of the most important — and sometimes daunting — tasks for any small business owner. The right accounting software can save you time, reduce errors, and help you stay compliant with HMRC regulations. With the UK’s Making Tax Digital initiative, using digital accounting solutions is now essential for most businesses. But with so many options available, how do you choose the best accounting package for your small business?
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FOR IMMEDIATE RELEASE |
20/09/2025 |
Here’s a rundown of the top accounting software packages for UK small businesses, their key features, and what makes each one stand out.
1. Xero
Xero is a cloud-based accounting platform popular with small businesses and accountants alike. It offers unlimited users, seamless bank connectivity, and a wide range of integrations with third-party apps like Shopify, Stripe, and PayPal. Xero is Making Tax Digital (MTD) compliant, making it easy to submit VAT returns directly to HMRC.
Key features:
Invoicing and quotes
Bank reconciliation
Inventory tracking
Customisable financial reports
Payroll (on higher plans)
Mobile app for iOS and Android
Pricing: Starts at £16/month (with discounts for new users) 13.
Best for: Growing businesses needing scalability and integrations.
2. QuickBooks Online
QuickBooks Online is one of the most widely used small business accounting software packages in the UK. It’s known for its intuitive interface, powerful reporting tools, and strong support for VAT and payroll.
Key features:
Automated invoicing and expense tracking
Cash flow projections
Customisable reports and dashboards
Payroll add-on
Multi-currency support
Integration with popular business apps
Pricing: Starts at £7/month for the first 6 months, then £28/month 3 2.
Best for: Businesses seeking advanced features and customisation.
3. Sage Accounting
Sage is a trusted name in UK business software, offering robust cloud accounting solutions tailored for small businesses. Sage Accounting is HMRC-recognised and MTD-compatible, with AI-powered features to automate tasks like payment reminders and VAT returns.
Key features:
Unlimited invoicing
Cash flow forecasting
Stock management
Payroll (add-on)
Multi-currency support
AI-powered receipt capture
Pricing: Free for 3 months, then from £18/month 1 3.
Best for: Micro-businesses and those needing strong UK compliance.
4. Zoho Books
Zoho Books is praised for its affordability, ease of use, and comprehensive feature set. It’s ideal for solopreneurs and micro-businesses, with a free plan available and scalable paid options.
Key features:
Invoicing and expense tracking
Inventory management
Bank reconciliation
Mobile app
Integration with other Zoho apps
Pricing: Free plan available; paid plans from £10/month 2.
Best for: Startups and micro-businesses looking for value.
5. FreeAgent
FreeAgent is designed specifically for freelancers, contractors, and small businesses. It’s MTD-ready and offers unlimited users, with payroll included at no extra cost.
Key features:
Automated invoicing and expense management
Time tracking
Project management tools
Payroll included
Mobile app
Pricing: £19/month, free for NatWest, RBS, or Ulster Bank business account holders 3.
Best for: Freelancers and small businesses wanting simple, all-in-one accounting.
6. Clear Books
Clear Books is a UK-focused cloud accounting solution with a simple interface and strong customer support. It’s MTD-compliant and offers affordable plans for small businesses.
Key features:
Invoicing and VAT submissions
Bank feeds
Payroll (add-on)
Multi-currency support
Pricing: Starts at £6.75/month for the first 3 months, then £13.50/month 3.
Best for: Businesses seeking ease of use and great customer service.
How to Choose the Right Accounting Package
When selecting the best accounting software for your small business, consider:
Your business size and needs: Do you need payroll, inventory, or multi-currency support?
Ease of use: Is the interface intuitive for you and your team?
Compliance: Is the software MTD-ready and HMRC-recognised?
Integrations: Does it connect with your bank and other business tools?
Support: Is customer service responsive and helpful?
Choosing the right small business accounting software can transform your financial management, save you time, and keep you compliant. Whether you’re a sole trader, freelancer, or growing SME, there’s a cloud accounting package to suit your needs and budget.
Tags:
Cloud Accounting |
Making Tax Digital Software |
Small business accounting
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