Best Accounting Software UK – Top 10 Compared For 2023

The best accounting software will help business owners, accounting teams, and entrepreneurs manage their finances with ease. When dealing with the complexity of taxes, invoices, and cash flows, it’s essential to choose accounting software that fits your business needs.

If you’re looking for the best accounting software in the UK, we’ve compiled a list of the top ten contenders, which includes FreshBooks, Oracle NetSuite, and Zoho Accountings. We’ve considered features such as cost-effectiveness, ease of use, customer support options, and automation capabilities to bring you the best software for your business. Read on to find the best fit for your needs.

The Top 10 Accounting Software Solutions Ranked

The best accounting app will depend on your needs, but after research and careful consideration, we concluded that Freshbooks comes out on top as the best accounting software solution.

It has a user-friendly interface, a wide range of features and integrations, 24/7 customer service support, and a free trial period. Check out how Freshbooks stacks up against the other top-ranked accounting software solutions.

1. FreshBooks — Our top pick for the best and most user-friendly accounting software in the UK. You’ll no longer need to worry about manually creating invoices or tracking your expenses. This service also offers customizable invoices, automatic late fees, multi-language invoices, and more.
2. Oracle NetSuite — A comprehensive online accounting solution that can be customized to fit the needs of any business. It integrates with NetSuite’s customer relationship management and human resources platforms and includes tools for customer portals, sales orders, and more.
3. Zoho Accounting — Perfect for retail businesses with built-in time tracking and invoicing capabilities and financial management tools like a cash flow manager and advanced inventory management.
4. Xero — Great product for those needing advanced features such as payment processing, expense tracking, and cash flow tracking in one place.
5. Tide.co — Excellent platform for bringing together essential bookkeeping and accounting functions, along with the convenience of automatic integrations with various accounting software tools, streamlining financial management for businesses.
6. Sage — Great accounting software package for UK micro-businesses that need additional features like job costing and cash flow management along with bookkeeping requirements.
7. Bonsai — An ideal choice if you’re looking for streamlined time management functionality with the added bonus of financial reporting capabilities.
8. QuickBooks — Best for freelancers looking to add multiple attachments, customize email templates, and easily keep track of all transactions in one place without having to use a third-party application.
9. Melio — A streamlined payment processing system designed to ensure you don’t have problems paying vendors. This user-friendly tool covers cheques to send, bank transfers, deposits, and more.
10. TurboTax — An efficient US tax-management system that allows you to easily import data from other platforms and includes Spanish-language functionality – and it even offers support for crypto investors.

How Does Accounting Software Work?

Good accounting software can play a pivotal role in modern business operations by streamlining financial management processes and providing efficient solutions for tasks such as tracking cash flow, generating financial reports, facilitating invoicing, and managing transactions.

An impressive 78% of small companies have embraced cloud accounting solutions. This shift towards accounting software reflects the growing recognition of its immense benefits and the utility of cloud services.

By harnessing the power of cloud-based accounting, businesses can easily access and update their financial records, ensuring accuracy and timeliness in their financial operations.

Bookkeeping vs. Accounting Software: The Difference Explained

Key responsibilities of bookkeeping include recording transactions, posting credits and debits accurately, preparing financial statements such as balance sheets, and managing payroll tasks.

Accounting includes tasks such as interpreting financial data, generating reports for stakeholders, making adjustments to ensure accuracy in data, and analyzing costs and revenues with the goal of determining profitability and performance.

Key Reasons Why You Need Accounting Software

While some businesses still use traditional accounting methods, modern accounting software offers a host of advantages over manual bookkeeping – and the industry is expected to grow to $11.8 billion by 2026. Here are five key reasons why you need accounting software:

Automation

Accounting software automates the recording and tracking of financial transactions, which eliminates manual data entry and reduces the chance of errors. This helps streamline bookkeeping processes so businesses can focus on the core aspects of their operations instead.

Accurate Reporting

Accounting software quickly and accurately produces reports to help you monitor your business’s performance in real-time. With up-to-date reporting, you can more easily identify areas for improvement and identify potential risks before they become costly problems.

Increased Efficiency

Accounting software increases efficiency by enabling multiple users to access the same information simultaneously from multiple locations. It also eliminates redundant tasks such as faxing or mailing documents back and forth between locations or departments.

Reduced Costs

Finally, since automated processes reduce the amount of labour needed for some tasks, such as manually entering customer invoices, companies are able to make savings of as much as 50%. At the same time, they’re able to achieve equivalent or greater accuracy.

Reviews of the Best UK Accounting Tools

Accounting software is an essential part of running any business, and with the right tool, you can save time and money. To help you find the best accounting software for your needs, we’ve compiled a list of the top UK accounting tools.

1. FreshBooks — Number 1 Accounting Software in the UK

Freshbooks offers a comprehensive suite to streamline your invoicing and payment processes.

With features like automatic late fees and multi-language support, it stands out as an efficient solution for businesses seeking to enhance their financial management.

One of the standout features of this accounting software product is its customizable invoices. This feature allows users to tailor their invoices to match their brand identity, presenting a professional and cohesive image while ensuring the invoicing process remains consistent with the overall brand strategy.

The automatic late fee feature is a game-changer as well for businesses aiming to maintain consistent cash flow. Late payments can strain business relationships, but with this feature, users can effortlessly apply late fees, gently nudging clients to adhere to deadlines.

FreshBooks’ cross-platform versatility, meanwhile, working across Windows, Mac, Linux, and mobile, qualifies it as the best bookkeeping app on the market.

Finally, the multi-language invoicing feature is a great tool for breaking down language barriers, allowing users to generate invoices in various languages.

Pricing

The Lite plan offers a solid foundation with features like unlimited invoicing and expense tracking, while the Plus plan takes this a step further with automatic expense tracking, recurring billing, and reports.

The Premium plan adds project profitability tracking and customizable email templates. For businesses needing support, the Select plan offers dedicated account management and custom onboarding services.

2. Oracle NetSuite — Customizable Cloud Accounting Software

Oracle NetSuite is a powerful enterprise resource planning (ERP) platform that offers comprehensive accounting and payroll software. Its standout feature lies in its robust integrations, allowing businesses to seamlessly connect and automate various essential accounting functions.

The cloud-based financial management solution not only assists with tracking financial data but also offers advanced invoicing and bill-paying features.

NetSuite’s ERP system handles core functions like finance, accounting, inventory, orders, and procurement and even offers options to incorporate tools for CRM, HR, and professional services automation.

The platform’s ability to cater to various business processes and its emphasis on scalability and efficiency sets it apart, making it a strategic choice for businesses experiencing rapid growth.

NetSuite’s accounts software provides a range of features that cater to the diverse needs of businesses. Core financial tools empower businesses to manage operations and ensure compliance, while the customizable General Ledger can adapt to specific requirements and global financial management.

The software’s Accounts Receivable and Accounts Payable solutions automate and streamline processes, while the tax management feature simplifies domestic and global tax compliance.

It’s worth noting that Oracle NetSuite doesn’t publish pricing information online and is geared towards enterprise-level businesses.

Nevertheless, NetSuite’s numerous strengths, including its advanced features, cloud-based architecture, scalability, and comprehensive integration capabilities, make it an appealing choice for businesses looking for a robust ERP solution.

Pricing

NetSuite doesn’t provide pricing details online but charges subscription charges based on the number of users and tools included and a setup fee.

3. Zoho Accounting — Ideal for Retail Businesses

Zoho Accounting stands out as a comprehensive business accounting solution, which simplifies financial tasks for businesses of all sizes.

With a user-friendly interface and robust features, Zoho Accounting is ideal as small business bookkeeping software.

Zoho Accounting enables real-time collaboration between businesses and customers for ecommerce and retail store owners. This Customer Portal streamlines communication, allowing customers to easily access invoices, payment history, and relevant documents.

Users can efficiently manage customer interactions and inquiries, and you can ensure customer satisfaction by reducing communication delays.

The Sales Orders feature is noteworthy. This simplifies the order management process by allowing businesses to create, track, and manage sales orders seamlessly. For businesses dealing with a high volume of orders, this feature helps optimize order processing and inventory management, reducing errors and delays.

Zoho Accounting also offers a vendor partner portal facilitating collaboration with vendors and suppliers. This portal ensures smoother communication for order placement, invoicing, and payment tracking.

However, it’s worth noting that Zoho Accounting is limited to a maximum of 10 users, which may pose an issue for larger businesses, though shouldn’t be a problem for smaller operations.

Pricing

Plans range from a Free offer, suitable for businesses with limited revenue, to the Elite and Ultimate plans aimed at larger businesses. Each plan offers different features and capabilities, such as the number of users allowed, invoice limits, and automation capabilities.

4. Xero — Best for Advanced Features

Xero Accounting is an innovative cloud-based accounting software platform. It’s a top choice for businesses of all sizes, from freelancers and startups to larger established companies.

The software’s exceptional focus on tracking and paying bills makes it a valuable tool for maintaining strong financial health. Xero’s feature-rich platform offers solutions to various financial challenges that businesses encounter.

Xero’s payment processing capabilities set it apart by making the task of paying bills streamlined and hassle-free. The software enables businesses to maintain excellent relationships with suppliers and creditors. With Xero, costly late fees have become a thing of the past, as users can easily stay on top of bill payments.

The dashboard provides a clear overview of when bills are due, current and projected expenses, and purchase orders.

With Xero, businesses can effortlessly monitor expenses, forecast budgets, and identify financial trends. This capability is invaluable for efficient financial management, helping businesses make informed decisions based on real-time financial data.

Xero’s user-friendly interface and automation contribute to a streamlined process, eliminating the time-consuming aspects of traditional bookkeeping apps.

Xero’s emphasis on cash flow tracking contributes significantly to its appeal. Business owners can gain real-time insights into their financial position, helping them navigate the complexities of managing income and expenses. All in all, it’s definitely a contender for best online accounting software.

While Xero has a lot to offer, and many users will find its integrations sufficient, some of its capabilities are basic – like its inventory management, expense claims, and multi-currency functionality.

Pricing

Xero accounting software’s UK pricing is feature-based rather than user-based, enabling businesses to leverage unlimited users across their plans.

This approach is beneficial for businesses experiencing rapid expansion, as all plans offer a wide array of capabilities, including advanced tools such as purchase orders, inventory management, and multi-currency accounting.

5. Tide.co — Easy Bookkeeping Integration App

Tide.co is a digital banking platform that’s among the best accounting software for small business.

While not a full accounting software suite, it offers a range of features to simplify financial management.

Tide.co offers business owners an efficient and convenient way to manage their finances with its modern technology and app-based platform. Its all-in-one platform streamlines bookkeeping, invoice management, cash flow tracking, and tax preparation into a single, easy-to-use interface.

Additionally, the automatic integrations feature simplifies data entry by integrating with various accounting software solutions, eliminating manual data transfer between different financial tools for increased accuracy.

Expense card management addresses customers’ need for efficient expense tracking through invoices within the Tide app that can be sent directly to help businesses get paid faster.

A drawback of Tide.co is the lack of an overdraft facility, which may limit flexibility in cases where short-term funding is needed. However, its other features still provide tremendous value for entrepreneurs.

Pricing

Tide.co offers a range of account plans designed to cater to small businesses, freelancers, and sole traders, including Free, Plus, Pro, and Cashback options.

6. Sage — Job Costing Software for Microbusinesses

Sage Accounting Software offers a versatile cloud-based accounting solution catering to small business owners and freelancers.

With its comprehensive suite of products, including Sage 50cloud Accounting, Sage Intacct, and Sage Accounting, it addresses various business needs.

When it comes to cash flow management, Sage Accounting Software’s Cash Flow Manager feature is one of the best. It allows businesses to monitor and forecast cash flow, make informed financial decisions, and allocate resources efficiently.

The software also offers an Advanced Inventory Management system that helps businesses optimize inventory levels, track stock movements, and streamline order processes. By addressing these challenges, businesses can reduce carrying costs and improve operational efficiency.

Lastly, the Job Costing feature provides a way for businesses to manage multiple projects or jobs with ease. This includes allocating expenses, tracking time and resources used in each project as well as monitoring their financial performance individually.

With this insight into project costs and revenues, businesses can stay within budget while maximizing profits from profitable ventures.

It should be noted that Sage Accounting Software has limited third-party integrations, which could be a drawback.

Pricing

Sage Accounting Software has several plans with varying features, such as invoice creation, expense tracking, automatic bank reconciliation, and advanced functionality like VAT returns and support for multiple users.

7. Bonsai — Built-in Time Tracking and Invoicing

Bonsai is one of the best bookkeeping software products for small businesses. It simplifies client management, project tracking, and financial management with a streamlined dashboard.

It does this by providing a range of features from invoicing, scheduling, and reports. It also offers integrations with popular third-party apps like Stripe, PayPal, and Shopify to make payment processing easier.

Aside from its time and financial management tools, Bonsai offers a comprehensive AP automation feature. This is designed to automate repetitive tasks such as invoicing, payments, and accounting. This reduces manual effort and the chances of errors which are common in manual financial processes.

Time Management is also addressed through this tool. Freelancers and businesses alike benefit from its project management features, including tracking time and tasks, and work collaboratively with ease. This ensures projects stay on schedule and eliminates the need for multiple tools or manual processes.

Where Bonsai stands out is in its customizable invoices and contracts. This is a great feature for businesses of any size, regardless of their industry or market segment.

Bonsai does have some reported automation issues, but these don’t seem to be a major problem.

Pricing

Bonsai accounting software offers three tiers – Starter, Professional, and Business. The biggest difference between Starter and Professional is workflow automation, integration with Quickbooks and Zapier, and custom branding.

Leaping to Business will get you additional features like subcontractor management and three team seats.

8. QuickBooks — A Freelancer’s Best Friend

QuickBooks, a leading accounting software solution for freelancers around the world, shines with its feature-rich platform designed to cater to various business needs. It stands out for its user-friendly interface, versatile pricing plans, and exceptional customer support.

The platform not only covers essential accounting functions like invoicing and expense tracking but also offers unique features such as direct HMRC-approved VAT return submission and an income tax assessment estimator, which simplifies tax calculations for users.

QuickBooks is among the best accounting software for sole traders in the UK that offers users a comprehensive suite of features and functionality. One of its most notable advantages is that there are no usage limits on any plans, making it suitable for businesses with varying transaction volumes.

It also has the added benefit of adding multiple attachments to transactions, streamlining record-keeping, and enhancing accuracy.

In addition, QuickBooks allows users to customize email templates to cater to their branding needs and facilitate standardized communication with clients. Another standout feature is its ability to consolidate income-producing transactions in one spot, simplifying financial monitoring and reporting.

However, this software does have a relatively steep learning curve, which may require some investment of time and energy to fully grasp its functionality.

Despite this, QuickBooks’ competitive pricing and exceptional support make it a top choice for small businesses seeking an effective accounting solution – and there’s a lot of functionality here for relatively cheap accounting software.

For more information, you can check out our in-depth guide to QuickBooks.

Pricing

Plans range from Self-Employed for the single user to Advanced, which allows up to 25 users. All plans include features designed to address accounting and management needs without usage limits.

If you want features like multi-currency capabilities and supplier and bill management, opt for Essentials and jump to Plus or Advanced for budget management and inventory tracking.

9. Melio — Streamlined Payment Processing

Melio is an innovative accounts payable solution designed for small business accounting. It offers a streamlined way to manage online payments through bank transfers and debit or credit cards.

The software’s standout features include payment scheduling, automated data synchronization, reporting, invoicing, and payment reminders.

Melio isn’t technically a full accounting app like FreshBooks, but its simplified payment process is a great asset. Melio makes it easy for you to add vendor information and upload invoices into the platform, streamlining the entire payment workflow and eliminating labour-intensive tasks.

Integrating with QuickBooks further enhances Melio’s value proposition by allowing seamless collaboration between the accounting and payment departments. For businesses using QuickBooks, this eliminates the need for duplicate data entry while ensuring accuracy across financial processes.

Small businesses can also benefit from Melio’s ability to defer payments using credit cards. This helps businesses optimize their cash flow as well as earn reward points through responsible credit card usage, which can improve their credit score in return.

Pricing

Melio’s provides a free foundation that allows users to access essential functionality. However, the fees associated with specific services are determined based on usage, ensuring businesses only pay for what they use.

10. TurboTax — Efficient Tax Management System

TurboTax is a well-known and widely used accounting software tool designed specifically for US taxpayers. It’s important to note that TurboTax is tailored for US tax requirements but can be suitable for US expats with tax obligations in multiple countries.

This is a crucial consideration, as the United States requires its citizens to continue paying taxes even if they reside abroad for an extended period of time.

TurboTax stands out from other tax filing software solutions with its comprehensive coverage of all major IRS forms and schedules required for various types of tax returns. This feature simplifies the process, ensuring that users can accurately report their financial information and take advantage of deductions they are eligible for.

TurboTax also offers access to live tax experts who can provide guidance throughout the preparation process, helping users make informed decisions about their taxes.

Furthermore, TurboTax emphasizes maximizing deductions by guiding users through a series of questions to identify potential deductions they might otherwise overlook. This helps users minimize their overall tax liability and ensure accurate filing.

One thing to consider is that TurboTax is more expensive than other software programs. However, the cost is justified by its excellent tax management expertise.

Pricing

TurboTax’s plans include a free version for simple returns, an Assisted plan for maximizing deductions, and a full-service plan for more complex situations like investment income. Additionally, live expert assistance is available for personalized guidance.

The Best Accounting Apps in the UK Compared

Check out this table for a quick comparison of some of the best accounting apps in the UK.

The Best Free Accounting Software in the UK

When it comes to the best free accounting software in the UK, Zoho Accounting stands out as a top choice. Its user-friendly interface and robust features make it an excellent solution for startups and freelancers.

With tools for invoicing, expense tracking, and financial reporting, Zoho’s free plan covers essential bases for small businesses.

However, it’s important to note that while free bookkeeping software like Zoho’s free-forever plan is beneficial for certain scenarios, it won’t be suitable as a long-term solution for businesses. Free tools often lack the scalability, advanced features, and dedicated support that growing businesses require.

As operations expand, investing in a more comprehensive paid accounting solution becomes a necessity to meet evolving needs and ensure data security and compliance.

Key Considerations for Choosing the Best UK Accounting Tool for You

When selecting an accounting tool for your UK-based business, there are several critical factors that warrant careful consideration. Each of these factors plays a pivotal role in determining which accounting tool aligns best with your business’s specific needs and requirements.

By evaluating these core factors, you can make an informed decision that contributes to efficient financial management and growth.

Budget and Future Scaling 

Your budget is a fundamental aspect to consider when choosing an accounting tool. While cost should not be the sole determining factor, it’s essential to find a tool that provides value within your financial constraints.

Additionally, take into account any potential future scaling prices. As your business grows, your accounting needs will evolve, so selecting a tool with scalable pricing can save you from having to switch to a new solution later.

User Number and Accessibility

The number of users who will interact with the accounting tool is a crucial aspect. Depending on your business structure, you might need to provide access to multiple team members or stakeholders. Ensure the tool you choose offers the appropriate number of user licenses without incurring additional costs.

Moreover, consider the accessibility of the tool – can it be accessed from various devices and locations? A cloud-based solution will be beneficial if remote access is necessary.

Compatibility and Integration Needs

Before committing to an accounting tool, evaluate its compatibility with your existing software ecosystem. Seamless integration with other tools you use, such as CRM or inventory management systems, can streamline your workflow and prevent data silos.

The ability to synchronize financial data across various platforms enhances accuracy and saves time by reducing manual data entry.

Ease of Use and Learning Curve

The usability of the accounting tool is vital for both you and your team. A user-friendly interface and intuitive navigation tool can expedite the onboarding process and reduce the learning curve.

This is especially significant if you have team members who are not well-versed in accounting practices. A tool that simplifies complex financial tasks will help ensure accurate financial management across the board.

Plan Features and Limitations

Different accounting tools offer varying plans with distinct sets of features. Carefully review the features included in each plan to determine which ones align with your business requirements. Keep in mind that certain advanced features are exclusive to higher-tier plans.

Assess whether the features offered cater to your immediate needs while also allowing room for future growth and expanded functionality.

Conclusion – What is the Best Accounting Software in the UK for 2023?

We’ve delved into the intricacies of the best business accounting software products available for the UK market. Among the contenders we examined, FreshBooks emerged as a standout option tailored to the diverse needs of businesses in 2023.

With its user-friendly interface and robust feature set, FreshBooks is an excellent choice for businesses of all sizes. The software’s intuitive design facilitates efficient invoice creation, expense tracking, and financial reporting.

Notably, its cloud-based nature ensures accessibility from anywhere, promoting remote collaboration and enhancing overall productivity.

Accounting Software UK FAQs