Choosing the right accounting software is essential for small businesses looking for a way to manage their finances while saving time and staying compliant with tax regulations. But with so many options available, finding the best solution can feel overwhelming.
This guide explores the top accounting software for small businesses, comparing key features, benefits, and pricing. Whether you need simple invoicing, expense tracking, or advanced financial reporting, we’ll help you find the perfect fit. Plus, we answer common questions to ensure you make the right choice for your business.
The 7 best accounting software providers for small businesses
Sage
Sage offers powerful, easy-to-use accounting software designed for freelancers, sole traders, small businesses, and growing enterprises. With cloud-based solutions and desktop software, Sage helps you to automate financial tasks, improve cash flow visibility, and access useful insights through reporting. Whether you need simple invoicing, advanced stock management, or multi-entity consolidation, Sage provides scalable solutions to fit your needs.
Pricing (excluding VAT)
| Sole Trader Free | Free |
| Sole Trader | £7 per month |
| Start | £18 per month |
| Standard | £39 per month |
| Plus | £59 per month |
Current offer: Sole Trader: 90% off for 12 months. Start / Standard / Plus: 90% off for 6 months
Key Features
- Invoicing: Customise, send, and track invoices on the go
- Expense tracking: Import and manage expenses with ease
- Bank reconciliation: Securely connect and reconcile transactions automatically
- Cash flow forecasting: Gain real-time visibility into finances
- VAT & Tax compliance: Simplify tax calculations and submissions
- Multi-entity consolidation: Manage multiple accounts in one system (Intacct)
- Stock management: Track and control inventory efficiently (Sage 50)
- Automated payments: Accept payments and reduce manual admin
- Custom reporting: Generate financial reports with advanced analytics
- Cloud collaboration: Work seamlessly with teams from any location
Tide
Tide Accounting is a seamless and user-friendly accounting solution tailored for small businesses. Integrated directly with a Tide business account, it simplifies your financial management by merging banking and bookkeeping. Tide includes features like auto-categorisation, invoice management, and the ability to connect business bank accounts. New users can enjoy a two-month free trial of Admin Extra, unlocking unlimited invoicing and enhanced accounting features to optimise cash flow and business growth.
Pricing (excluding VAT)
| Free MTD tools (sole traders) | £0.00/mo |
| Invoice Assistant | £5.99 per month |
| Tide Accounting — Sole Trader | £13.99 per month |
| Tide Accounting — Limited Company | £19.99 per month |
| Admin Extra — Sole Trader | £17.99 per month |
| Admin Extra — Limited Company | £24.99 per month |
Current offer: 2 months free of Admin Extra for eligible new users opening a Tide account.
Key Features
- Automated bookkeeping: Real-time transaction categorisation for easy record-keeping
- VAT & Self Assessment filing: Submit tax returns directly with HMRC compliance
- Profit and Loss, Balance Sheet, and Trial Balance reporting: Generate essential financial statements
- Live Bookkeeping Score: Track outstanding accounting tasks in real time
- Integration with up to three non-Tide business accounts: Sync external accounts for a complete view of finances
- Customisable invoicing: Create and send invoices with auto-chasing and auto-matching
- Profitability insights: Interactive financial charts to help make informed business decisions
- Tax management tools: Track deadlines and set aside money for tax payments
- Accountant user-access: Provide access to an accountant for bookkeeping support
- Three-month free trial of Admin Extra: Unlock unlimited invoicing and enhanced accounting features
Xero
Xero is a cloud-based accounting software designed for UK small businesses. It helps you automate financial tasks such as bookkeeping, and provides real-time insights, so you can focus on what they do best. You can collaborate with your accountant and other team members online, ensuring access to up-to-date financial data from anywhere for all relevant parties. The software is also HMRC-recognised, making tax compliance easier.
Pricing (excluding VAT)
| Simple | £7 per month |
| Ignite | £16 per month |
| Grow | £37 per month |
| Comprehensive | £50 per month |
| Ultimate | £65 per month |
Current offer: 95% off for the first 6 months when bought by 31 March 2026.
Key Features
- Bank connections: Link bank accounts for automatic transaction imports and reconciliation
- Online invoicing: Create and send invoices with automated payment reminders
- Expense tracking: Manage spending, reimburse employees, and control costs efficiently
- VAT returns: Calculate and file VAT returns directly with HMRC
- Reporting: Generate financial reports for insights into business performance
- Payroll: Process payroll for a small number of employees and run payroll reports
- Project tracking: Monitor budgets, track time, and manage job costs
- Multi-currency accounting: Handle international transactions seamlessly
- App integrations: Choose from 1,000+ apps to customise and enhance accounting workflows
- Accounting dashboard: Get a real-time overview of cash flow, invoices, and expenses
Moss
Moss is not first and foremost an accounting software but it provides all the tools you need to run accounting process. That includes simplifying pre-accounting by automatically collecting and categorising transaction data, ensuring accuracy and efficiency. Moss integrates with accounting software via two-way APIs, allowing you to sync expenses, payments, and supplier data. With AI-powered automation, customisable approval workflows, and real-time financial insights, Moss helps you to accelerate your month-end processes and enhances your control over company spend. Moss doesn’t make its prices public, but you can choose from flexible pricing packages, tailoring the platform to your needs with add-ons like advanced accounting and ERP integrations.
Pricing
Pricing is custom for each business and not made public.
Key Features
- Expense capture: Automatically collect and categorise transactions, invoices, and reimbursements
- AI-powered pre-accounting: Extract data from receipts and auto-fill accounting fields
- Accounting integrations: Sync expense and supplier data with accounting software via two-way APIs
- Custom spend attributes: Configure spend tracking based on company-specific financial dimensions
- Approval workflows: Customise approval processes to match internal finance policies
- Real-time reconciliation: Automatically match paid transactions to accounting records
- Budget tracking: Monitor company-wide spending in real time for better financial oversight
- Procurement management: Streamline purchase requests and approvals within Moss
- Corporate cards: Issue unlimited virtual and physical cards with custom limits and automated receipt fetching
- Advanced reporting: Generate insights on spending trends, supplier payments, and cash flow
Quickbooks
QuickBooks is a widely used online accounting software tailored for small businesses, freelancers, and self-employed professionals. You can use it to track income and expenses, create invoices, manage VAT, and gain real-time financial insights. With automation, bank connections, and built-in tax compliance features, Quickbooks helps you save time and reduce your administrative burden.
Pricing (excluding VAT)
| Sole Trader Plus | £10 per month |
| Simple Start | £16 per month |
| Essentials | £38 per month |
| Plus | £47 per month |
| Advanced | £115 per month |
Current offer: 90% off for 6 months for new customers.
Key Features
- Expense tracking: Automatically categorise expenses and upload receipts via mobile or desktop
- Bank integration: Connect accounts for real-time transaction syncing and reconciliation
- Invoice management: Create and send professional invoices with payment tracking
- VAT compliance: Prepare and submit VAT returns with an error-checking feature
- Payroll integration: Automate employee payments with an optional payroll add-on
- Cash flow insights: Monitor financial health with real-time reports and dashboards
- Multi-currency support: Manage transactions in over 145 currencies
- Project tracking: Track employee time, set budgets, and measure project profitability
- Advanced reporting: Generate financial statements, profit & loss reports, and business analytics
- Collaboration tools: Invite accountants and bookkeepers for seamless data sharing and support
Freshbooks
FreshBooks is an cloud-based accounting software designed for freelancers, solo traders, and small businesses. It offers essential features like invoicing, expense tracking, and financial reporting, as well as automated billing, online payments, and double-entry accounting. The platform integrates with 100+ apps, supports multi-currency transactions, and offers mobile access for on-the-go bookkeeping. Its customer support ensures users get help whenever needed.
Pricing (excluding VAT)
| Lite | £16 per month |
| Plus | £30 per month |
| Premium | £42 per month |
| Select | Custom / quote |
Current offer: 50% off for 3 months.
Key Features
- Professional invoicing: Create and customise invoices with automated billing and payment reminders.
- Expense tracking: Automatically track expenses with receipt scanning and bank imports.
- Online payments: Accept credit card and bank payments with secure integrations.
- Time tracking: Log billable hours and auto-add them to invoices.
- Financial reporting: Access profit & loss, tax summaries, and real-time financial reports.
- Double-entry accounting: Maintain accurate records with built-in accounting tools.
- Mobile access: Manage finances from anywhere using the FreshBooks mobile app.
- Project management: Collaborate with teams, set budgets, and track project profitability.
- Multi-currency & multi-language supportV Get paid in different currencies with global accessibility.
- Third-party integrations: Connect FreshBooks with over 100 apps, including Shopify, Stripe, and Zapier.
Crunch
Crunch is an online accounting service designed for freelancers, contractors, and small businesses. Combining software with expert support from ACCA Chartered Certified Accountants, Crunch provides a simple but effective way to manage your finances. It offers flexible pricing, unlimited accounting advice, and features like invoice creation, expense tracking, and open banking integration. But it’s the dedicated support from accountants that really sets it apart.
Pricing (excluding VAT)
| Crunch Free | Free |
| Crunch Lite | £4 per month |
| Crunch Plus | £10 per month |
Key Features
- Invoicing: Create, send, and track unlimited invoices from any device
- Expense management: Scan receipts, track expenses, and automate claims
- Bank reconciliation: Easily match expenses and invoice payments with bank statements
- Open banking integration: Sync transactions directly from your bank
- Financial reporting: Get real-time insights and reports to monitor cash flow
- Corporation tax & VAT management: Ensure compliance with tax obligations
- Year-end accounts filing: Automate and streamline tax return submissions
- Dedicated account manager: Personalised support to guide financial decisions
- Self-assessment tax returns: Simplify personal tax filing with expert guidance
- HMRC & ACCA compliance: Trusted, certified services for accurate financial management
FAQS
1. What features should I look for in small business accounting software?
A good accounting software should include essential features such as invoicing, expense tracking, bank reconciliation, cash flow forecasting, tax compliance, and real-time reporting. Depending on your business needs, you may also want automation tools, payroll support, and integrations with payment platforms and banks.
2. How does cloud-based accounting software benefit small businesses?
Cloud accounting software allows business owners to manage their finances from anywhere, collaborate with accountants remotely, and securely store financial data. It also provides real-time updates, automated backups, and seamless software updates to ensure compliance with tax regulations.
3. Can accounting software help with tax returns and VAT submissions?
Yes, most modern accounting solutions include tax calculation and filing features, ensuring compliance with VAT and tax regulations. Some even integrate directly with tax authorities for seamless submissions, reducing the risk of errors and penalties.
4. Is accounting software suitable for freelancers and sole traders?
Absolutely. Many accounting platforms offer tailored plans for freelancers and sole traders, including simple invoicing, expense tracking, and tax calculations. These plans are often more affordable and designed to streamline financial management for self-employed professionals.
5. What’s the difference between cloud-based and desktop accounting software?
Cloud-based software provides flexibility, allowing access from multiple devices with automatic backups and updates. Desktop software, on the other hand, is installed on a computer and may offer advanced offline features but requires manual updates and backups. The choice depends on business size, mobility needs, and data security preferences.
