Top 10 Accounting Software Solutions for UK Small Businesses

A large number of UK-based small business accounting professionals use QuickBooks Online for safeguarding financial data. It’s one of the most versatile, cloud-based applications on the market. 

Intuit’s QuickBooks Online provides endless online training and resources and easily integrates with third-party applications. All features can be conveniently accessed from one main dashboard. You can upgrade your subscription as the business grows.

• Built-in reporting with a trial balance, general ledger, and Self Assessment preparation
• 30-day free trial with a range of subscription options
• Live bookkeeping service with versatile support
• Mobile app can receive payments, capture receipts, track mileage, etc.
• Run optional full-service payroll with time tracking and inventory management

Sole Trader  (£10/month), Simple Start (£16/month), Essentials (£33/month), and Plus (£47/month) – with discounts available for the first 6 months and annual payment options possibly available.

Making Tax Digital is ready and recognised by HMRC as compatible, making it fully compliant with UK tax requirements.

Cloud-based accounting software functionality offers a level of convenience that many business styles will find advantageous.

Most small businesses use QuickBooks Online to safeguard financial data. It’s one of the most versatile, cloud-based applications on the market.

Tipalti offers UK small businesses a powerful alternative to traditional accounting software by delivering advanced automation for accounts payable and global payments, which helps with AP reconciliation and payment automation.

When the integrated ERP or accounting software has multi-entity or real-time features, you can work with multi-instance, multi-entity Tipalti software for accounts payable by each entity with combined views in real-time.

• Strong integration with QuickBooks and other UK accounting platforms
• Global payment capabilities in 120+ currencies to 200+ countries and territories, using over 50 payment methods including BACS and Faster Payments.
• Supplier management with self-service portal, tax form collection, and payment status
• Integrations with popular accounting software, ERPs, CRMs, and other tools
• Compliance and tax management reporting, including validation
• Invoice processing to automate approvals, improve accuracy, and reduce errors
• User-friendly, cloud-based AP automation and global payments platform
• Authorised as an Electronic Money Institution by the UK’s Financial Conduct Authority (FCA).

Pricing starts at £99 a month with support from a dedicated UK office in London.

Tipalti is best suited for fast-growing businesses of any size that need to manage the accounts payable process and make international supplier payments. It’s ideal for a company that processes a high volume of invoices, deals with multiple currencies, and/or needs to comply with local tax and regulatory requirements.

If your integrated ERP or accounting software has multi-entity or real-time features, you can work with multi-instance, multi-entity Tipalti software for accounts payable by each entity with combined views in real-time.

Tipalti serves a wide range of industries, including e-commerce, advertising, digital media, SaaS, marketplaces, and more.

Xero is cloud-based accounting software. Its clean user interface allows a small business to handle various accounting tasks simultaneously. The system fully integrates with third-party payroll services and supports unlimited users. 

It offers a clean user interface that allows for handling multiple accounting tasks simultaneously through its cloud-based platform.

• All plans include features specifically designed for UK businesses, including MTD compliance
• An interactive dashboard to manage items, monitor inventory, and spot sales trends
• Project management tools to track expenses, budgets, billable time, payments, and more
• 1,000+ app integrations with 24/7 email and live chat support
• Several reports, including profit and loss statements and a general ledger
• Mobile apps for iOS and Android with collective access and real-time data

Starter £16/month, Standard £33/month, Comprehensive £47/month, Ultimate £59/month. 

Xero is small business accounting software that has the complexity to grow with your brand. If you’re managing a lot of vendors, inventory, and/or e-commerce, the collaborative and real-time reporting tools make Xero a good fit.

Sage 50cloud is a robust online accounting software platform incorporating comprehensive customisation options and in-depth financial tools. Sage enables small businesses to spend less time on administrative tasks with invoicing, automatic expense tracking, and tax calculations.

Sage 50 pricing plans typically follow tiers like Pro Accounting (often 1 user), Premium Accounting (e.g., 1 to 5 users), or Quantum Accounting (e.g., 1 to 11+ users). Sage 50 also offers Payroll bundles. The program smoothly integrates with Microsoft 365 (including Excel spreadsheets), making it a hybrid solution that can be accessed anywhere.

Sage also offers a number of other accounting solutions such as Sage 200, Sage Intacct and Sage Business Cloud Accounting which are more suitable for larger organisations rather than small businesses. 

• Can customise cash flow settings
• Create and track invoices, record transactions, and capture expenses
• Account reconciliation with purchase orders, payments, invoices, and bank feeds
• Advanced inventory management with cost and quantity tracking
• Payroll with direct deposit, pay cards, and tax collection

Sage 50 pricing uses monthly subscriptions, normally starting from £103/month for Standard and £209/month for Professional.

Sage 50cloud works best for a small business that is trending towards higher growth. It’s a platform that’s built to last and requires little upgrading as your business expands.

QuickBooks Self-Employed is one of the most well-known platforms for single-entrepreneurs, one-person small businesses in the UK market.

The software is tailored to sole traders, freelancers, and small businesses comprising one self-employed independent contractor or freelancer who needs simple accounting software, making invoicing, paying bills, and bookkeeping easy.

• Tailored for self-employed individuals (branded as QuickBooks Self-Employed)
• Priced at £10/month with discounts often available for the first few months
• Track income and expenses, plus set and track growth goals
• Automatic mileage tracking through a mobile phone GPS
• Accounting, reports, and financial statements
• Send customer estimates and invoices with a payment link for online payments
• HMRC Self Assessment ready with tax estimate features

£10 per month for Sole Traders. 

Self-employed independent contractors and freelancers need simple accounting software. One-person small businesses are looking for simplicity and value in the UK market.

Odoo offers open-source business management apps that can be customised for any size business. This modular, scalable approach allows businesses to start simple with accounting tools and evolve their systems into complete Enterprise Resource Planning solutions tailored to their needs.

• Fully making Tax Digital compliant, offering invoicing, bank reconciliation, reporting and more
• Modular structure means you only pay for the features you need
• Fully integrated system where data flows seamlessly between different functions
• A large community and partner network for support and implementation

Free Version available. The Standard and Custom plans include all apps, including the accounting app, for a single fee and start from ~ £20 from Standard (24.90 Euro according to their website) and ~ £30 (37.40 Euro). Discounts for annual pricing are available.  

Small businesses that want a highly customisable, all-in-one platform that can grow with them from basic accounting to a full business management suite.

Microsoft Dynamics 365 Business Central is an all-in-one business management platform for small and medium-sized businesses. It connects finance, sales, service, and operations to streamline processes and enhance customer interactions.

• Comprehensive financial management tools, including accounting, billing, and forecasting
• Powerful reporting and analytics integrated with Microsoft 365
• Supply chain, manufacturing, and operations management
• Project and service management features

On the official Microsoft website, there are no specific prices mentioned; however, according to various Microsoft partners, pricing is as follows: 

• Dynamics 365 Business Central Essentials: £53.80 per named user, per month
• Dynamics 365 Business Central Premium: £76.90 per named user, per month
• Dynamics 365 Business Central Team Members: £6.20 per named user, per month

Larger or quickly growing small businesses that require an integrated platform to manage all facets of their operations, beyond just accounting. It plays in the league of solutions like NetSuite ERP and SAP Business One.

Targeted at freelancers, contractors, and very small businesses. FreeAgent is particularly well-suited for freelancers and small service businesses who need simplified accounting with strong UK tax compliance features.

FreeAgent offers a simple, intuitive interface with tax features and an excellent dashboard giving a clear financial overview.

• Specifically designed for the UK tax system with full HMRC compatibility
• Comprehensive VAT management with automatic calculations
• Excellent time tracking for project-based businesses
• Free for NatWest, Royal Bank of Scotland, or Ulster Bank business account holders
• Automated tax calculations for self-assessment
• Strong mobile app for on-the-go accounting

£33 per month for Limited Companies, £19 per month for sole traders. Discounts for annual subscription and the first month are available and free with bank accounts as mentioned above. 

Freelancers and small service businesses who need simplified accounting with strong UK tax compliance features.

Crunch offers freelancers and contractors a comprehensive solution that addresses the specific complexities of the UK tax system. The solution takes a hybrid approach combining software with accountancy expertise and specialised knowledge of UK contractor regulations.

• Combines accounting software with expert advice specifically for the UK tax system
• Built-in tools for Self-Assessment, VAT returns, and Corporation Tax
• Designed specifically for freelancers, understanding IR35 and other regulations
• Integrated expense management and invoicing
• HMRC recognised as compatible and MTD compliant
• Strong support for freelance businesses

The free version, Crunch Free, is available. Normal pricing is £27 for Sole Trader Pro, £90 for Limited Company Pro, and £137 for Limited Company Premium. Annual discounts and promotions are available. 

Freelancers and contractors who need both software and expert advice. Businesses are navigating the complexities of the tax system, especially regarding contractor regulations.

Clear Books offers micro-businesses an affordable, compliant solution with strong local support options. It features compliance capabilities and local customer support with a straightforward pricing model.

• Award-winning software specifically designed for UK small businesses
• Affordable pricing for very small operations
• Phone support is included in all plans
• Fully MTD compliant with direct HMRC integration
• Simplified interface designed for non-accountants
• Intuitive reporting for small business needs

Free version for basic sole trader needs, £15 / month for Small Package including Limited Companies and Sole Traders, £31 / month Medium Package, and £ 41 / month for Large Package. Discounts are available for annual plans and the first month.

Micro-businesses seeking an affordable, compliant accounting solution. Small operations that need strong local support and straightforward financial management tools.