The best accounting software for small businesses Accounting software is a smart, scalable solution for small businesses, but which platform will supercharge your workflow? Written by Eddie Harris Reviewed by Dan Heelan Updated on 12 May 2026 Our Research To recommend the best accounting software, our writers and researchers focused on the factors that matter most to small business owners – ease of use, features, design, scalability, and suitability for the UK taxation system. Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. 1 of 3 Sage: Get paid 7 days faster Get 3 Months Free 2 of 3 Xero: Limited time: 90% off for 6 months Visit Xero 3 of 3 Compare software deals to find the best option Compare Costs Zoho Books is the best accounting software for small businesses in 2026 as it offers a free Making Tax Digital-compliant plan, and scored the highest for usability in our 57-hour, hands-on testing process.Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is now mandatory for sole traders and landlords whose qualifying income is over the £50,000 threshold. The best way to stay compliant is with MTD-ready software than can store digital records, and submit your updates directly to HMRC.That’s why we’ve worked rigorously to determine the six best accounting software for small businesses, covering a total 1,512 areas of investigation, with 555 completed tasks, during our testing. Key takeaways Zoho Books is our top choice for the best accounting software, thanks to its excellent usability and free plan for solopreneurs.On all Sage plans you will get access to Sage Copilot, its AI-powered assistant.Xero is a better option if you require 24/7 support.QuickBooks provides a particularly effective feature for bank reconciliation.Other important functionalities to consider are bookkeeping, accounts payable, accounts receivable, mobile capabilities, and integrations. How we test and rank accounting software We hands-on tested the seven accounting software platforms on this page, reviewed against the six key categories we determined to be most important to small business owners in the UK, informed by our own Accountancy Sector Report:How effectively does it handle core accounting tasks? (20%) Does it give a clear understanding of your financial health and sustainability? (17.5%) Does it contribute to your overall productivity? (17.5%) Does it provide adequate help and support? (15%) Is it good value for money? (15%) Is the software easy to use? (15%) You can find a more detailed description of our methodology framework at the end of the review. The best accounting software: comparison table 0 out of 0 backward forward Rating Price from Best for Free trial FEATURED PROVIDER BEST OVERALL Xero Zoho Books QuickBooks FreeAgent Sage FreshBooks 4.3 4.8 4.5 4.5 4.2 4.1 £7/month (+ VAT)80% off for 6 months Free £10/month (+ VAT)Get 90% off QuickBooks for six months £10/month (+ VAT)£5/month for 6 months (+ VAT) £18/month (+ VAT)First three months FREE £16 per month50% off for three months Expanding businesses that need a software that can grow alongside them Best overall accounting software Managing your finances on the move, thanks to an excellent mobile app If you bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle If you’re looking for seamless management of payroll & accounting Service based business that need affordable time tracking tools I last updated this article on 12/05/2026 I frequently review and update this article to make sure it's accurate and relevant, and I've verified all pricing information as correct as of this date. However, as the accounting software industry is so competitive, I always recommend confirming pricing directly with providers before making any buying decisions. Video: a rundown of our top accounting software platformsShort on time? Our video explains everything you need to know in just two-and-a-half minutes: Loading 1. Zoho Books: the best overall accounting softwareOverall rating: 4.8Zoho Books pricing: from £0 to £199 + VAT per monthFree trial: 14 daysCompany overview: Zoho has been providing accounting software since 2011, having initially made its name with CRM systemsRead our full Zoho Books reviewZoho Books is the best accounting software for small business owners because it has a completely free plan, and the easiest-to-use interface that I tested. Outside of its free plan, Zoho Books provides a wide range of plans that support scalability, with helpful tools like:The best free accounting software plan for small business owners An accurate time tracking function Auto-scan receipt toolAbility to assign multiple delivery addresses to customersThe dashboard feels tailored to small businesses and can offer quick insights into key information. Source: Startups.co.ukBusiness owners will also benefit from being in the wider Zoho ecosystem, and in theory could run their entire business from Zoho One (its all-in-one software suite), seamlessly connecting your accounting platform software to your CRM and email software, as well as:Zoho Desk (helpdesk software)Zoho Voice (unified cloud contact software)Zoho Bookings (scheduling for appointment-based businesses)Zoho Sign (a digital signature solution)Just note that these apps will have an additional cost attached. What are Zoho Books's best features? The free plan is HMRC compliant for MTD for Income Tax Customer portal is included on all plan levels Zoho Books has a clean, clear interface that contributes to a short learning curve Are there any drawbacks? Built-in receipt capture is basic, and requires manual entry Zoho Books only has limited hours of support, Xero is a better option for 24/7 assistance Unlike a provider like Sage, there's no built-in payroll functionality What AI features does Zoho Books offer?Zoho Books comes with Zoho’s own AI-powered conversational assistant Zia, designed to reduce your admin. Using Zia, you can:Create purchase transactions for youPull up useful infoDisplay key data from your Business OverviewProvide customer emailsList overdue invoicesGenerate email contentHow much does Zoho Books cost?Zoho Books’s plans for small business owners range from free to £30 + VAT:Free StandardProfessionalPremiumCost per month (paid monthly)£0 £12 + VAT £24 + VAT£30 + VATCost per year (paid annually) £0 £10 + VAT £20 + VAT£25 + VATNumber of users One user (and one accountant)Three usersFive users 10 usersThe free plan is very useful for basic needs, but the limitations (like the 1,000 invoice cap per year) make it unsuitable for more complex businesses.It does also have two additional plans for more established businesses:EliteUltimateCost per month (paid month)£99 + VAT£199 + VAT Cost per year (paid annually) £85 + VAT£165 + VAT Number of users 10 users15 usersJust keep in mind, there’s a £2 charge to add any additional users outside the limit in your plan.Who do we recommend Zoho Books to?We would primarily recommend Zoho Books to sole traders who need MTD-ready software that’s free and simple to use. Expert Opinion: Licensed Accountant Dan Heelan on Zoho Books... Zoho Books is clean, quick, and relatively easy to use. If you’re looking to use many of the other Zoho apps, this one is worth a serious look, especially as it has arguably the best ‘free’ plan. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 2. QuickBooks: best mobile app for on-the-go bookkeepingOverall rating: 4.5QuickBooks pricing: from £10 + VAT to £123 + VAT per monthFree trial: 30 daysCompany overview: part of the American multinational company Intuit Inc., QuickBooks is accounting software specifically designed for SMEs with 6.5 million subscribers worldwideRead more in our full QuickBooks review QuickBooks has a standout mobile app, which is great for solopreneurs who need to manage cashflow on the move. Impressively, the Quickbooks app also includes an automatic mileage tracking feature.QuickBooks’s cloud software is feature-packed, with helpful tools like:A customisable dashboard you can tailor to your likingA free onboarding session to get you up to speedPre-populated fields and email preview to help streamline workflowCustom reports and templates tailored to your business’ needsQuickBooks’s cash flow projection tools also stood out as a highlight during our testing. Source: Startups.co.ukQuickBooks also has a superior bank reconciliation function to many of its competitors, allowing you to enter your bank balance so you can confirm all your transactions have been put in. What are QuickBooks's best features? One of the few platforms that allows multi-currency on a mid-tier plan (£38 + VAT) Many software developers build with QuickBooks in mind: you can connect to over 750 apps QuickBooks predicts your transaction categorisation What are the drawbacks? Time tracking for projects, or billable hours, is only included in the Plus and Advanced plans (we found these can be difficult to locate) QuickBooks can be difficult to master, and easy to break: Zoho Books is best for ease-of-use What AI features does QuickBooks offer?QuickBooks plans comes embedded with Inuit Intelligence, its AI-driven system, but the tools you will get will depend on your tier level.Sole Trader Plus:AI-powered bank feeds: effecient transaction categorisationSimple Start:VAT AI: flags errors between your Profit & Loss and VAT reportsEssentials:AI-powered collaboration: highlights transactions that need actioning and prompts a conversation with your advisorPlus:Anomaly detection: catches possible errors in your Profit & Loss and balance sheetsCustomer AI: manages leads and creates email follow upsAdvanced: Finance AI: analyses KPI progress and provides proactive insightsProject Management AI: drafts project outlinesHow much does QuickBooks cost?Sole Trader PlusSimple StartEssentialsPlusAdvancedCost per month (paid monthly)£10 + VAT£16 + VAT£38 + VAT£56 + VAT£123 + VATCost per year (paid annually) £108 + VAT£172 + VAT£410.40 + VAT£602 + VAT£1328.40 + VATNumber of users One user (and accountant)One user (and accountant)Three users (and accountant)Five users (and accountant)25 users (and accountant)QuickBooks is the best value for money when it comes to its well balanced range of plans, and its currently running a Making Tax Digital promotion where you can get 90% off your first six months if you pay monthly, or 90% off for your first year when you pay annually.You can find out more in our dedicated QuickBooks pricing guide.Who do we recommend QuickBooks to?We recommend QuickBooks to sole traders who need effective mobile bookkeeping. The intuitive layout combined with detailed features also makes it suitable for more advanced business operations. Expert Opinion: Licensed Accountant Dan Heelan on QuickBooks... Whilst QuickBooks can be quite overwhelming for novice users, in terms of its power and value for money, it’s arguably the best for the investment. If you are looking to primarily manage your affairs on mobile, at the time of writing, this will be the app of choice. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 3. FreeAgent: best free plan (if you qualify)Overall rating: 4.5FreeAgent pricing: if you don’t qualify for the free plan, costs range from £10 + VAT to £33 + VAT per monthFree trial: 30 daysCompany overview: FreeAgent was acquired by NatWest Group in 2018, is based in Edinburgh, and now helps over 200,000 small businessesFreeAgent is the best value for money if you can access a free plan, as you’ll get a comprehensive accounting software with zero financial outgoings. In order to access a free account you’ll need to open a business bank account with any of the following banks:NatWestRoyal Bank of ScotlandUlster BankMettle (and make at least one transaction per month)FreeAgent is fully MTD-ready software with great built-in features like:Cash flow alerts to keep you updated about potential surpluses and shortfallsExtremely easy to follow timeline feature for invoicingDetailed end-of-year reports that give you a clear view of your financesCustomisable invoicing templates, tax reminders, and end-of-year reportsUser-friendly invoicing templatesWe appreciated FreeAgent’s clear layout. Source: Startups.co.ukFreeAgent strikes the balance between simplicity and functionality, remaining beginner friendly while still providing sophisticated business management tools. What are FreeAgent's best features? FreeAgent is the only software I tested that gives you built-in tax forecasting and planning tools at no extra cost FreeAgent includes tax prediction for limited companies AI-powered Smart Capture receipt tool is included on all plans What are the drawbacks? I found that the platform uses unclear terminology in places and certain sections, like payment reminders and support, were tricky to find FreeAgent's lack of scalability won't suit rapidly expanding SMEs (Xero is the best option for scalability) When manually entering a bill FreeAgent won’t provide autofill suggestions (though it will when capturing a receipt or clearing down your bank account) What AI features does FreeAgent offer?In 2025, FreeAgent announced a partnership with AI fintech Jenesys. Primarily, FreeAgent uses an AI-powered Smart Capture feature to extract information when you snap your receipts.How much does FreeAgent cost?LandlordSole TraderPartnership or LLPLimited companyCost per month (paid monthly)£10 + VAT£19 + VAT£27 + VAT£33 + VATCost per year (paid annually) £100 + VAT£190 + VAT£270 + VAT£330 + VATNumber of users Unlimited Unlimited Unlimited Unlimited Even if you don’t qualify for the free plan, the starting price of just £10 per month and no hidden fees is a good deal for sole traders who want an affordable and comprehensive MTD-ready software.Who do we recommend FreeAgent to?FreeAgent is best for freelancers, sole traders, and novice accountants that need a middle ground feature-filled system that’s not overly complex. Expert Opinion: Licensed Accountant Dan Heelan on FreeAgent... If you are banking with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle, then FreeAgent is a very strong choice because of the sheer value for money of having a powerful accounting app for free. A solid choice for service-based businesses. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 4. Xero: best for expanding businessesOverall rating: 4.3Xero pricing: ranges from £16 +VAT to £65 + VATFree trial: 30 daysCompany overview: Xero is a New Zealand based company founded in 2006, and now boasts 4.2 million subscribersRead our full Xero reviewXero’s best for growing businesses due to the clear upgrade path of well balanced plans that can take you from a startup to a multimillion pound enterprise.Each plan provides impressive functionality, including:Xero handles bank reconciliation and stood out as particularly user-friendlyOne of the easiest interfaces for quickly dealing with your bank transactionsSimple connectivity to third-party apps (importing data from Excel is easy)Xero is complex, but it offers a lot of functionality once you learn its nuances. Source: Startups.co.uk.Xero is also the best choice for businesses who need to process high volumes of client expense claims, providing a clear upload process, and lets you assign expenses to specific clients. What are Xero's best feautres? Xero is a market leader with over 1000 possible integrations to increase productivity Direct bank feeds are included in each plan Each plan includes JAX, the AI-powered assistant which can reduce admin time What are the drawbacks? QuickBooks and FreeAgent are more cost-effective solutions for multi-currency, as Xero locks this behind the advanced Comprehensive plan (£50 + VAT per month) Xero has impressive functionality, but we found this results in a steep learning curve HubDoc, the receipt capture tool, requires some extra steps to use as it’s a separate app from Xero itself What AI features does Xero offer?Xero’s AI tool is JAX (Just Ask Xero), an AI business companion which can automate workflows and send out payment reminders to your clients. In March 2026, Xero announced a multi-year partnership with Anthropic to integrate Claude into JAX.How much does Xero cost?SimpleIgniteGrowComprehensiveUltimateCost per month (paid monthly)£7 + VAT£16 + VAT £37 + VAT£50 + VAT £65 + VATNumber of users UnlimitedUnlimitedUnlimitedUnlimitedUnlimitedXero isn’t a budget option, but a key feature is that there are no caps on user limits (there’s an additional cost if you want more members of your team to be able to add receipts, but this is quite a rare need).Who do we recommend Xero to?We recommend Xero to high-turnover businesses with long-term client bases, and those who have ambitious plans to scale. Expert Opinion: Licensed Accountant Dan Heelan on Xero... Having worked with thousands of clients, time and time again the feedback is that Xero is the easier accounting software to use once the owner has got used to it. It’s packed with features and scales so well as your business grows. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 5. Sage: best for combining payroll and accountingOverall rating: 4.2QuickBooks pricing: from £18 + VAT to £59 + VAT per monthFree trial: first three months freeCompany overview: as of 2017, Sage is the UK’s second largest technology company, the largest supplier to small businesses, and has 6.1 million worldwide customersSage is best for small businesses who need to manage payroll alongside their bookkeeping, as Sage its one of the few providers to include payroll features at every plan level, which can keep you up to date with HMRC legislative changes ensuring a simple payroll Year End.Sage Copilot, the built-in AI assistant, can give you insights into unusual pay, so you can quickly resolve any potential issues. Sage Copilot is provided at all plan levels, and can provide other helpful assistance like:Set up automatic payment remindersAutomatically categorise and reconcile paymentsGet alerted ahead of VAT deadlines, and flags possible mistakesGet real-time insights into trends and opportunitiesAI can help capture receipts and invoicesSage provides customisable themes and logos, allowing you to establish strong brand authority. Source: Startups.co.ukWhen I tested Sage, I found the interface to be modern, visually appealing, and easy to navigate around. I found the process of invoicing and quoting especially slick: the progress bar showing if the invoice had been created, sent or viewed, stood out to me as particularly helpful. What are Sage's standout features? Establish your brand identity: Sage provides strong customisation of themes and logos A trusted brand: Sage is UK based, and has a long-standing accounting brand reputation Fast bookkeeping: Sage's interface provides a quick, no-nonsense experience What are the drawbacks? Sage can be a more expensive option for small business owners Receipt capture isn't included in the entry level tier, you need to pay for Standard or Plus The mobile app is lightweight compared to some competitors, especially QuickBooks What AI features does Sage offer?Sage Copilot comes included in every plan, which can help cut down on your admin. You can read more about this in our full Sage pricing guide.How much does Sage cost?Sage Start Sage StandardSage PlusCost per month (paid month)£18 + VAT£39 + VAT£59 + VATNumber of usersOneThree UnlimitedSage is decent value for money, providing good features at a reasonable cost – such as the ability to send unlimited sales invoices on an entry level plan – and has no hidden fees or additional costs.Just note that for payroll, you get one employee included on Start and Standard, and five on Plus. Each additional employee costs an additional £1.50 per employee, per month.Who do we recommend Sage to?We’d recommend Sage to freelancers in service-based businesses, like builders, contractors or handymen. Expert Opinion: Licensed Accountant Dan Heelan on Sage... Sage continues to be a household accounting name with a solid product. It’s quick and delivers. Its cloud offering has been getting better and better in recent times, and is a competitive choice for any business, in terms of features. Dan Heelan Accountant and Business Services Director at Heelan Associates Ltd 6. FreshBooks: best if you need project and time tracking toolsOverall rating: 4.1QuickBooks pricing: from £8 + VAT per month to £21 + VAT per monthFree trial: 30 days (if another business is added, this gets another 30-day free trial)Company overview: based out of Toronto, Canada, FreshBooks is designed primarily for SMEs, and over 30 million people have used it in over 160 countriesRead our full FreshBooks review for more details FreshBooks is best for service based businesses, as you get unlimited time tracking included on all plan levels. The 24/7 chatbot will also be a useful feature for new businesses.You can use FreshBooks’s precise time tracking to convert billable hours into invoices. Source: Startups.co.ukSole traders will appreciate the intuitive, user-friendly interface, and I particularly liked how well organised the navigation bar is. You can read more about this in my detailed comparison of QuickBooks vs FreshBooks. What are FreshBooks's best features? Get support at any hour from the 24/7 customer support chatbot Unlimited time tracking so you can accurately invoice clients A short learning curve for new users What are the drawbacks? The cap on client numbers on the Lite and Plus plans will require many small business owners to start on at least the Premium tier There's no client portal, like with Xero The range of third-party applications is limited, especially in comparison to Xero What AI features does FreshBooks offer?FreshBooks doesn’t currently have any built-in AI tools, we’d recommend Sage for AI-powered accounting software.How much does FreshBooks cost?Lite Plus PremiumCost per month (paid monthly)£16 + VAT£30 + VAT £42 + VATCost per year (paid annually)£192.22 + VAT£360 + VAT£504 + VATNumber of usersOneOneOneFreshBooks charges £8 per additional team member, which is the main extra cost to keep in mind. If you need a more scalable accounting software, we would recommend Xero over FreshBooks.Who do we recommend FreshBooks to?FreshBooks is ideally suited to smaller business and sole traders due to the limited reporting and customisable elements, but if you’re a service business with simple needs and require time tracking, it will be a solid fit. What should I look for when choosing accounting software?The crucial factors when choosing accounting software are pricing, scalability, AI-tools for automation, and MTD-compliance:Pricing: there’s no point going for the cheapest option available if it doesn’t have the features that are vital to your business model.Scalability: ensure your chosen plan aligns with your financial goals.AI tools: look for products that simplify your day-to-day tasks, like the recording and categorisation of transactions, with machine learning.Financial reporting: choose software that offers a range of customisable reports and access to real-time insights.Integrations: seamless integration with banking, payment gateways and CRM systems will dramatically enhance efficiency.Usability: poorly-designed systems can slow your operation down, and possibly even result in admin errors.Mobile capabilities: a user-friendly app that lets you access key financial information and perform essential tasks anywhere is essential for SME owners on the move.Help and support: live chat, forums, and phone or email support help you and your team find solutions more quickly when it comes to software issues or queries.In 2026, many of the top accounting software options will be very close in features and functionality. So, it’s more about focusing on the niche tools that will benefit your specific business.Read next: the best self-employed accounting software platforms The best accounting software for Making Tax Digital for Income TaxChoosing the best accounting software for Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will require you to choose an HMRC-approved option that can:Create, store and correct digital records of your income and expenses relating to self-employment and propertySubmit your quarterly updates to HMRCSubmit your final declaration by 31 January the following yearYou can find out more information in our full guide to MTD for Income Tax.Luckily, all our recommendations for the overall best accounting software are MTD-ready:Zoho Books: if this is your first time moving from spreadsheets to a full accounting software plan, then Zoho Books is a great beginner-friendly option.QuickBooks: has one of the best mobile apps on the market, and also has an excellent bank reconciliation feature for added peace of mind if you’re new to using bank feeds.FreeAgent: if you can access a free account with a qualifying bank account (like NatWest), FreeAgent is an excellent no-cost option for being MTD-ready.Xero: while it can take some time to learn its complexities, once you get to grips with it, it’s an excellent piece of MTD-ready software that can also support foreign property income.Sage: all plans come with an AI-productivity assistant that can be particularly useful for self-employed users who want some extra help getting through their tax admin.FreshBooks: a good option for unlimited time-tracking on all plans and a short-learning curve for new users.Please note that while FreshBooks asserts that it is MTD-ready, we could not verify its presence on the official HMRC-approved software list as of May 2026.You can find more information in our guide to choosing MTD-software. We’d also heavily recommend that you confirm your chosen software is fully compliant for your needs with HMRC directly, using the tool from gov.uk. How we test accounting software for UK small businessesWe combined data-driven industry research with 57 hours of actual, hands-on testing.Our in-house researchers explored a total of 1,512 areas of investigation spread across the six categories we determined as the most critical for business owners. These six criterion were directly informed by our Accountancy Sector Report, which helped define the key needs of small businesses in the UK that need to perform accounting tasks.These six categories were given an appropriate weighting, based on their individual relevancy to our core audience. Our six main categories were broken down into 25 sub-categories to ensure a comprehensive review framework.Our six testing categories:Core accounting features (20%): how well does the software handle the key functions of accounting software, including sending invoices and quotes, how it aids you with tax preparation, how it documents your transactions, if it provides accurate time tracking, and how it deals with bank reconciliation.Financial planning and visibility tools (17.5%): how does the software track upcoming monthly bills and expenses, as well as create cashflow projections, create budgets, as well as how it handles reporting (such as balance sheets), inventory tracking, and compliance support.Operational efficiency (17.5%): how many third-party applications can the software integrate with to make bookkeeping easier, the level of brand customisation it allows, if it allow for client visibility (through a customer portal, for example), if there’s a mobile app, and what type of AI-tools it provides.Help and support (15%): what types of support are available, what are the contact hours, are there effective customer resources, and what security measures are in place.Pricing (15%): we explored the monthly fees costs, hidden fees, setup costs, and contracts of each platform, as well any free trials or plans on offer.Usability (15%): we had a range of staff members complete the same series of tasks across the platforms, amounting to 37 user tests in total, to determine what the platform is actually like to use. Our hands-on testing process Our decision to rank Zoho Books as our number one recommendation was informed by my own hands-on testing of the platform. I tested Zoho Books myself, carrying out actions like: setting up my client list, creating invoices and quotes, sending out payment reminders and assessing the Profit and Loss report. The ease with which I carried out these tasks resulted in my high scoring of Zoho Books’s user interface. Eddie Harris Senior Reviews Writer In summaryZoho Books is the best accounting software for small businesses, providing a free MTD-ready plan, seamless inventory tracking, a comprehensive mobile app, and a range of features to boost your efficiency and make it easier to keep your accounts.Zoho Books might be our overall pick, but accounting software isn’t always a one-size-fits-all approach. You should look for software that aligns with your business type and size: Xero will be the best choice for a rapidly expanding business, for example. Jump back up to any of our reviews: Accounting software comparison table 1. Zoho Books 2. QuickBooks 3. FreeAgent 4. Xero 5. Sage 6. FreshBooks What should I look for when choosing accounting software? The best accounting software for Making Tax Digital for Income Tax How we test accounting software In summary Frequently Asked Questions Is it worth switching from Xero to Zoho Books for the cost savings? For micro-businesses or solopreneurs whose revenue falls under £35,000 for the year, it will be worth switching from Xero to Zoho Books as you'll be able to use Zoho Books's free plan (Xero doesn't have a free tier). Just keep in mind you'll be sacrificing Xero's ecosystem of third-party apps. Xero vs. QuickBooks: which is better for a UK business with multiple currencies? QuickBooks is the better option if you're dealing in multiple currencies, as it provides multi-currency support on its mid-range ``Essentials`` plan (£38 + VAT per month), whereas Xero has this on the slightly pricier ``Comprehensive`` plan (£50 + VAT per month). What's the best accounting software for ecommerce, or eBay sellers, in the UK? Xero is the best accounting software to support ecommerce selling, thanks to its reporting tools and wide range of integrations that can support VAT accounting for eBay and Shopify. QuickBooks is also a strong contender, thanks to tools like inventory tracking. Is switching accounting software platforms difficult? While AI-powered mapping tools has made the migration process simpler, moving your data across to a new platform can still be very tricky, as well as having to learn a brand new interface. You'll also need to consider any integrations you might have connected to your software, which is why we'd recommend a software like Xero which can support your business as it grows. Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Tags Topic spotlight Written by: Eddie Harris Senior Reviews Writer Eddie is resident Senior Reviews Writer for Startups, focusing on merchant accounts, point of sales systems and business phone systems. He works closely with our in-house team of research experts, carrying out hours of hands-on user testing and market analysis to ensure that our recommendations and reviews are as helpful and accurate as possible. Eddie is also Startups video presenter. He helps create informative, helpful visual content alongside our written reviews, to better aid customers with their decision making. Eddie joined Startups from its sister site Expert Reviews, where he wrote in-depth informational articles and covered the biggest consumer deals events of the year. And, having previously worked as a freelancer providing screenplay and book coverage in the film and television industry, Eddie is no stranger to the demands of the sole trader. Reviewed by: Dan Heelan Licensed Accountant and founder of Heelan Associates Dan Heelan is a Licensed Accountant and the founder of Heelan Associates, a UK accounting firm dedicated to helping small businesses thrive and scale. With 18+ years of hands-on experience as a practicing accountant and a former small business owner himself, Dan possesses real-world expertise in the financial lifecycle of an entrepreneur - from initial bookkeeping to complex tax strategy. He and his team have personally guided over 3000 UK clients through successful growth, offering comprehensive support across accounts, tax, and payroll. Dan is widely recognized for his authoritative, practical financial advice, shared weekly with his highly engaged audience of over 50,000 small business owners and entrepreneurs on YouTube. His unique blend of high-level tax knowledge and direct, operational experience with leading accounting software ensures his advice is both technically sound and immediately applicable to your business growth.