The best accounting software for small businesses 2025

Accounting software is a smart, scalable solution for small businesses, but which platform will supercharge your workflow?

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.
Written and reviewed by:
Olivia Bond profile photo

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.

Through in-depth analysis and actual, hands-on user testing, we determined Zoho Books to be the best accounting software for small businesses. It’s affordable, feature-filled, and easy to use.

Choosing the wrong software for your finances and bookkeeping could seriously hamstring your operation, so you need to be confident before investing your time and money. That’s why our dedicated research team worked rigorously to determine the best accounting software for small businesses.

Best accounting software at a glance

  • Zoho Books: best overall accounting software
  • QuickBooks: best for advanced financial insights and customisation
  • FreeAgent: simple but effective tax forecasting and scenario prediction tools
  • Xero: best for experienced accountants and established businesses
  • Sage: supports tailored financial solutions and strong brand representation
  • FreshBooks: great for new businesses that need all-hours support
  • Clear Books: provides MTD-compliant tax support for VAT returns, including a wide range of tax types

That said, you might find that a different platform has niche tools and specialist capabilities that will benefit your particular business. Check out our breakdown of all the heavy hitters below.

💡Key takeaways

  • We found Zoho Books to be the most user-friendly software, offering both a seamless desktop platform and mobile app for real-time financial tracking.
  • Zoho Books isn’t suitable if you’re looking for third-party integrations or need 24/7 support.
  • With Making Tax Digital (MTD) becoming mandatory from April 2026, Clear Books is fully equipped to submit tax returns this way.
  • Think about price, scalability and usability before choosing a software.
  • Other important functionalities to consider are bookkeeping, accounts payable, accounts receivable, mobile and integrations.

The best accounting software: comparison table

Swipe right to see more
0 out of 0
Price From
Price From

Free

Price From
Price From
Price From

£15 per month (excl. VAT)

First three months free

Price From

£15 per month

Price From

£13.50 per mont (excl. VAT)

£6.75 per month for the first three months (excl. VAT)

Rating
4.3
Rating
4.8
Rating
4.5
Rating
4.5
Rating
4.2
Rating
4.1
Rating
4.0
BEST FOR

Best for more experienced accountants and established businesses that need more than just the basics

BEST FOR

Best for managing your inventory and sales, and for those who need an on-the-go software for real-time financial management

BEST FOR

Best if you need sophisticated financial insights and advanced customisation

BEST FOR

Best choice for budget-conscious businesses seeking simple yet effective tax forecasting and scenario prediction tools

BEST FOR

Best for businesses seeking tailored financial solutions and strong brand representation

BEST FOR

Best for new businesses that need affordable software with the reassurance of all-hours support

BEST FOR

Best if you need MTD-compliant tax support for VAT returns, including a wide range of tax types

Free Trial
Free Trial
Free Trial
Free Trial
Free Trial
Free Trial
Free Trial
Try Xero Compare Deals Compare Deals Compare Deals Try Sage Compare Deals Compare Deals
I last updated this article on 07/07/2025

I frequently review and update this page to make sure the information you’re seeing is accurate and relevant. I have verified all pricing and information as accurate as of 07/07/2025. However, as the accounting software industry is so competitive, I would always recommend confirming pricing directly with providers before making any financial decisions.

Video: a rundown of our top accounting software platforms

Short on time? Watch our in-house Research Executive, Olivia Bond, explain everything you need to know about our top picks in just two-and-a-half minutes:

How we test accounting software for UK small businesses

Our testing and analysis is a rigorous process. We 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 important to good accounting software.

Our six testing categories:
  • Core accounting:
    How well does the software handle the key functions of accounting software, including invoicing, tax preparation and financial transactions?
  • Financial planning and visibility:
    How well does the software help you get a clear and helpful understanding of your company’s financial health?
  • Operational efficiency:
    How well does the platform integrate with other products, and how customisable is the workflow?
  • Help and support:
    What types of support are available, what are the contact hours, and what security measures are in place?
  • Pricing:
    How much do the monthly fees cost, and are there any hidden or setup costs?
  • Usability:
    How easy is the software to use?

1. Zoho Books

Zoho Books is the best overall accounting software

Zoho Books
4.8
  • Starting price from: free
  • Free trial: 14 days
  • Highly effective importing and exporting capabilities
  • Excellent free plan for solopreneurs and micro-businesses
  • Mobile app for real-time financial management
Summary Zoho initially made its name from CRM systems, but has been providing accounting software since 2011. Zoho Books stands out for its clean and modern interface, and seamlessly aligns with the broader Zoho products. While the platform is geared towards small businesses, we would also recommend it to sole traders, as the tools can be used by inexperienced users.
Show moreless

What does Zoho Books do best?

Zoho Books combines helpful transaction documentation with seamless inventory tracking – as well as a suite of other helpful tools – to help your business run as efficiently as possible. It even has a mobile app for real-time financial tracking on the move.

Screenshot of Zoho Books inventory management

We particularly appreciated Zoho Books’ modern and easy-to-use interface. Source: Startups.co.uk

Zoho Books stands out as the most-user friendly accounting software I tested. Everything is so well signposted, and the natural intuitiveness of the platform means you’ll feel confident when completing frequent, day-to-day tasks like managing quotes and invoices.

Screenshot of Zoho Books dashboard

The dashboard feels tailored to small businesses, and can offer quick insights into key information. Source: Startups.co.uk

The dashboard has been designed specifically with small businesses in mind, giving you critical insights into your cash flow and payments at just a glance. The software also fits neatly into the wider Zoho ecosystem, so if you’re already using Zoho products for your business this one is a no-brainer.

More key features:

  • Accurate time tracking function 
  • Auto-scan receipts
  • Assign multiple delivery addresses to customers

What could be improved?

  • The timer was a bit fiddly, and I didn’t like that you couldn’t create a new project to assign it to until stopping the timer.
  • The reminder emails stood out as old fashioned, one specific example being that you could only add an image via URL.
  • Zoho Books only offers limited hours of support – live chat and phone support is only available weekdays from 9am until 6pm. Xero, by comparison, provides 24/7 assistance.
  • A more serious accountant might want a more complex bit of software – if that’s you, jump down to check out our Xero review instead.

How much does Zoho Books cost?

Swipe right to see more
0 out of 0
Plan
Plan
Plan
Plan
Cost

Free

Cost

£12 per month (excl. VAT)

£10 per month (excl. VAT)

Cost

£24 per month (excl. VAT)

£20 per month (excl. VAT)

Cost

£30 per month (excl. VAT)

£25 per month (excl. VAT)

What’s great about Zoho Books is that it provides a wide range of plans that support scalability. You can get started on the basic free plan, but upgrade to the higher levels if you need them. Just keep in mind there’s a £2 charge to add any additional users outside the limit in your plan.

Suitable if:
  • You want a beginner-friendly software that’s simple to use
  • You need a range of tools to support your business, especially inventory tracking
  • You’re looking to get started on a free plan
Not suitable if:
  • You’re planning on implementing non-Zoho integrations
  • You want support outside of standard business hours

What our Reviews Writer thought

I found Zoho Books really easy to use, and was particularly impressed by how fast and simple it was to turn a quote into an invoice, and then send it off to the client. Sending payment reminders was just as straightforward. I can see how Zoho Books could really streamline your workflow!

Eddie Harris Reviews Writer

2. QuickBooks

QuickBooks is best for advanced financial insights and customisation

QuickBooks
4.5
  • Starting price from: £10 (self assessment only)
  • Free trial: 30 days
  • Automatically flags mismatched balances
  • Cash flow projection tools to help with your financial visibility
  • Custom reports and templates tailored to your business’s needs
Summary Part of the American multinational company Intuit Inc, QuickBooks is accounting software that’s specifically designed for SMEs. It currently has 6.5 million subscribers worldwide. We think its intuitive layout combined with detailed features makes it suitable for more advanced business operations. It’s more suited to those working in accountancy rather than small business owners themselves, due to the complexity of the software and steep learning curve.
Show moreless

What does QuickBooks do best?

QuickBooks offers powerful tools like cash flow projections and in-depth reporting to give you a detailed look into your finances. It also has plenty of extra features that I appreciated, including its ability to automatically flag mismatched balances.

QuickBooks’ cash flow projection tools stood out as a highlight during our testing. Source: Startups.co.uk

I also liked the customisable reports and templates, which can be modified to fit your business’s specific needs. You can also customise the dashboard to your liking, so you get a lot of control over your workflow with QuickBooks.

You should consider QuickBooks if your business needs customisable reporting. Source: Startups.co.uk

I also appreciated how well laid out and logical the interface was. Everything felt natural, including quickly converting an estimate into an invoice, and sending out payment reminders straight from the overdue section.

More key features:

  • Access a clear Set Up Guide from the main dashboard
  • Free onboarding session
  • Pre-populated fields and email preview help streamline workflow

What could be improved?

  • The lack of built-in time tracking for projects, or billable hours, is a big miss for us (you need to connect QuickBooks Time, which costs extra). If you consider this a must have, check out Zoho Books instead, as it does have this feature.
  • I found the initial learning curve a bit steeper than I would have anticipated, whereas Zoho Books and FreshBooks were much simpler out of the gate.

How much does QuickBooks cost?

Swipe right to see more
0 out of 0
Plan

Sole Trader

Plan

Simple Start

Plan

Essentials

Plan

Plus

Plan

Advanced

Cost

Monthly:

£10 per month (excl. VAT)

£1 per month for seven months (excl. VAT)

Annually:

£108 per year (excl. VAT)

£10.80 for the first year

Cost

Monthly:

£16 per month (excl. VAT)

£1.60 per month for seven months (excl. VAT)

Annually:

£172 per year (excl. VAT)

£17.20 for the first year

Cost

Monthly:

£33 per month (excl. VAT)

£3.30 per month for seven months (excl. VAT)

Annually:

£356 per year (excl. VAT)

£35.60 for the first year

Cost

Monthly:

£47 per month (excl. VAT)

£4.70 per month for seven months (excl. VAT)

Annually:

£507 per year (excl. VAT)

£50.70 for the first year

Cost

Bespoke quote

Best suited for:

Sole traders and single property owners who are registered for VAT

Best suited for:

Sole traders and small business owners who are managing income tax and VAT

Best suited for:

Small businesses that are working with suppliers

Best suited for:

Small businesses that are managing projects and inventories of stock

Best suited for:

Businesses that need more sophisticated support like custom permissions and tailored insights

Features
  • Helps you prepare your Self Assessment tax return
  • Receive income tax estimates 
  • Send out invoices 
Features
  • MTD compliant – submit your VAT return directly to HMRC
  • Checks your VAT return for errors
  • Gives you VAT deadline reminders
Features
  • Bill management
  • Multi-currency support (over 145 currencies)
  • Employee time tracking so you can invoice your clients accurately
Features
  • Track your products, and see what’s selling the most
  • See the profitability of each of your projects
  • Smart budgeting
Features
  • Automatic data backup
  • Automate workflows
  • Custom charts and customised dashboards

QuickBooks is a fairly priced platform. If you opt for the Sole Trader tier, you can currently get started for just £1 per month for your first six months, making it a very low-cost option if you just want to get a self-assessment done.

Suitable if:
  • You need cash flow projection tools to help you budget effectively
  • You need software that provides extensive and customised reporting
  • You already have experience with accounting software and setting up workflows
Not suitable if:
  • You need to get up and running quickly with a beginner-friendly software
  • You need time tracking functionality
What did our in-house testers think?

“The platform is laid out in a way that makes sense, e.g., finding Bills under Expenses.”

“Converting estimates to invoices was really easy.”

“They are good at giving tooltips along the way.”

3. FreeAgent

FreeAgent provides simple but effective tax forecasting and scenario prediction tools

FreeAgent
4.5
  • Starting price from: £10 per month
  • Free trial: 30 days
  • The only software we tested that gives you built-in tax forecasting and planning tools at no extra cost
  • Helpful cash flow alerts about potential surpluses and shortfalls
  • Free plan available with certain qualifying banks
Summary Originally launched in 2007, FreeAgent is based in Edinburgh and now helps over 200,000 small businesses, and was acquired by NatWest Group in 2018. Our recommendation is that FreeAgent is best suited to freelancers, sole traders, and novice accountants. It’s a good middle ground for those who need a feature-filled system that’s not overly complex.
Show moreless

Why is FreeAgent right for my business?

FreeAgent is great value for money, providing great financial planning tools at a competitive price. Its tax timeline features and scenario prediction tools make staying on top of your business’s financial health an easy job.

We appreciated FreeAgent’s clear layout. Source: Startups.co.uk

The cash flow alerts keep you updated about potential surpluses and shortfalls, while another major highlight was the timeline feature for invoicing, which made everything extremely clear and easy to follow. The detailed end-of-year reports can also help you get a clear view of your finances, and streamline your operation.

You can create custom invoices with FreeAgent. Source: Startups.co.uk

Overall, FreeAgent strikes a good balance between simplicity and functionality. A platform like Xero, for example, is geared towards more experienced users, but with FreeAgent, you get a beginner-friendly option that still provides some serious business management features.

More key features:

  • Customisable invoicing templates, tax reminders, and end-of-year reports
  • Unique business insights provided by Radar
  • FreeAgent is Cyber Essentials Plus verified

What could be improved?

  • I did come across a couple of aspects that were not quite as user-friendly: the platform uses unclear terminology in places, and certain sections, like payment reminders, were a little tricky to find.
  • We were frustrated to find that with FreeAgent, in order to upload existing invoices from our computer, we needed to do this with an add-on integration. Whereas with many other providers you can do this easily through the platform itself.

How much does FreeAgent cost?

Swipe right to see more
0 out of 0
Plan
Plan
Plan
Plan
Cost

£10 per month (excl. VAT)

£5 per month for the first six months (excl. VAT)

Cost

£19 per month (excl. VAT)

£9.50 per month for the first six months (excl. VAT)

Cost

£27 per month (excl. VAT)

£13.50 per month for the first six month (excl. VAT)

Cost

£33 per month (excl. VAT)

£16.50 per month (excl. VAT)

While its monthly fees aren’t quite as low as QuickBooks’ or Zoho Books’, FreeAgent still represents very good value for money. With a starting price of just £10 per month and no hidden fees, we think this is a pretty good deal.

Suitable if:
  • You want forecasting tools at a competitive price
  • You need strong support for tax preparation
  • You want a low-cost starter plan
Not suitable if:
  • Having well designed help and support is a top priority
  • You want to assign multiple delivery addresses to a customer to streamline your operations
  • You prefer your software to save account codes for faster data entry
What did our in-house testers think?

“I was quite a big fan, I thought the layout was quite clear.”

“It definitely felt like it understood its audience – maybe novice accountants, freelancers, or sole traders – so it seems to fulfil what it’s aiming for pretty well.”

“It notifies you within the main dashboard – like your tax timeline – of what’s expected and when it’s due. Unlike other platforms, it really felt trustworthy in keeping you on track.”

4. Xero

Xero is best for experienced accountants and established businesses

Xero
4.3
  • Starting price from: £16 per month
  • Free trial: 30 days
  • Your clients can securely view and interact with their financial data through the Xero Portal
  • Track the depreciation and amortisation of your fixed assets over time
  • Connect with over 1000 possible integrations
Summary Based in New Zealand, Xero was founded in 2006 and now boasts 4.2 million subscribers. Xero is tailored mostly towards experienced professionals and accountants, predominantly positioning itself towards high-turnover businesses with long term client bases. We wouldn’t recommend it to new users.
Show moreless

Why is Xero right for my business?

If you’re a slightly more established business with a long-term client base, and you’re processing consistent billing, Xero will likely be the software you’re searching for. Xero combines sophisticated finance tools with a secure client portal to make sure you’re covered long-term. 

You can customise Xero’s dashboard to display the key information you need on the main screen. Source: Startups.co.uk

If you’re also having to process a high number of expense claims for your business or your clients, this is another area where Xero shines. It provides a clear section for uploading your receipt images and inputting mileage for travel claims, and you can assign the expenses to specific clients.

Xero is complex, but it offers a lot of functionality. Source: Startups.co.uk.

I found Xero to be a serious piece of software overall, with impressive functionality. It’s not for beginners, though, as there’s a pretty steep learning curve. I’d recommend it to accountants who deal with complex workflows and need the software to integrate into a much wider ecosystem.

More key features:

  • Over 1,000 possible integrations
  • Xero is fully GAAP and IFRS compliant
  • Ability to customise pre-populated emails

What could be improved?

  • During my testing, I found Xero’s interface to be a bit old-fashioned and complicated, especially compared to slick, modern competitors like Zoho Books.
  • Xero is the only provider on this list that makes you sign a contract (a one-month minimum term).
  • The overwhelming dashboard stood out as particularly clunky.
  • If you’ve never used accounting software, you’ll most likely be frustrated by Xero, and FreshBooks will be a much better fit.

How much does Xero cost?

Xero’s not cheap, and you need to be especially mindful of the additional per user fees. It costs £2.50 for each additional user, so if you need to get a lot of your staff set up with Xero, this could really add up. It’s also the only platform on this roundup to charge hidden costs for exceeding the bill and user limits on each plan.

Suitable if:
  • You’re an experienced accounting professional who needs advanced software
  • You have a high turnover, and need to manage frequent billing
  • You need a secure client portal for your customer base to use
Not suitable if:
  • You’re an accounting novice who needs user-friendly software
  • You want a modern, slick interface
  • You need basic workflows for simple tasks

What our Reviews Writer thought

The learning curve with Xero is pretty steep – this definitely isn’t ‘baby’s first accounting software’ – it definitely feels geared towards experienced users, but there’s a lot here that an accountant can sink their teeth into.

Eddie Harris Reviews Writer

5. Sage

Sage supports tailored financial solutions and strong brand representation

Sage
4.2
  • Starting price from: £15 per month
  • Free trial: 30 days
  • Ability to create custom reports that are tailored to your needs
  • Customisable themes and logos to establish a strong brand identity
  • Fully GDPR and PCI compliant ensuring top-tier security and regulatory assurance
Summary Based in Newcastle upon Tyne, as of 2017 Sage is the UK’s second largest technology company, the largest supplier to small businesses, and has 6.1 million worldwide customers. We feel its accounting software is best suited for service-based businesses: like builders, contractors, and handymen. While it’s good for managing quotes and invoicing, we feel it may lack the functionality needed by more established businesses.
Show moreless

Why is Sage right for my business?

Sage can help establish a strong brand identity using tools like tailored themes and logos, to really help you stand out. You can customise external documents like invoices and reports with your logo, and change themes and fonts.

Sage provides customisable themes and logos, allowing you to establish strong brand authority. Source: Startups.co.uk

Sage’s abilities are more than just skin deep, though, as you also get customisable reporting and seamless integrations with the wider Sage ecosystem to help streamline your operations. In my testing, the slick invoicing and quoting workflows really leapt out as modern and intuitive – both product and service-based businesses could benefit from using Sage.

Sage impressed us with its modern, visually appealing interface. Source: Startups.co.uk

You also get a lot of control with Sage – the customisable profit and loss reports are a key example – so if you’re looking for both insight and control over your finances, this is going to be a serious contender for you.

More key features:

  • Access to Sage Copilot, the AI-powered assistant
  • Data is securely stored with automatic cloud backups
  • AI can help capture receipts and invoices

What could be improved?

  • Aside from a few minor usability issues (like confusing naming conventions, such as an unclear name for expense forms) the main point of concern I had about Sage was the inability to automate payment reminders.
  • I also noted a lack of being able to bulk import contacts (unlike Quickbooks, which can do it via CSV), or bulk uploading expenses (Xero can do this, making it more suitable for managing high transaction volumes).

How much does Sage cost?

Swipe right to see more
0 out of 0
Plan

Accounting Start

Plan

Accounting Standard

Plan

Accounting Plus

Cost

£18 per month (excl. VAT)

First three months free

Cost

£39 per month (excl. VAT)

First three months free

Cost

£59 per month (excl. VAT)

First three months free

Sage, overall, represents very decent value for money. It might not be the absolute cheapest option possible, but you get some bang for your buck with its customisable reports and features, and there are no hidden fees or additional costs to fret about.

Suitable if:
  • You want to establish a strong brand identity through customisable themes
  • You need to seamlessly connect payroll integrations into your workflow
  • You want to create custom financial reports tailored to your specific needs
Not suitable if:
  • You want to rapidly upload a large amount of contacts and customers
  • You frequently upload expenses in bulk
  • You want to automate payment reminders and client follow-ups

What our Reviews Writer thought

One thing I really liked about Sage was that, when you send a quote, you get a timeline bar that shows you what stage of the timeline your invoice is currently at. I can see that this could be really helpful for small business owners to help them easily track what’s happening!

Eddie Harris Reviews Writer

6. FreshBooks

FreshBooks is great for new businesses that need all-hours support 

FreshBooks
4.1
  • Starting price from: £15 per month
  • Free trial: 30 days (if another business is added, this gets another 30 day free trial)
  • Get support at any hour from the 24/7 customer support chatbot
  • Precise Time Tracking for billable hours
  • Intuitive, user-friendly interface
Summary Based out of Toronto, Canada, FreshBooks is designed primarily for SMEs. To date, over 30 million people have used FreshBooks in over 160 countries. We feel that it’s certainly geared towards the needs of small businesses and sole traders, but high-level accountants and larger operations may find it too limited.
Show moreless

Why is FreshBooks right for my business?

FreshBooks is an affordable option for businesses that are just getting started, and need reliable software at a fair price. FreshBooks also provides a chatbot that you can access at any time of the day or night, which could be really helpful for new enterprises that need a lot of support.

We really liked how well organised the vertical navigation bar was on FreshBooks. Source: Startups.co.uk

Newer, inexperienced businesses (as well as sole traders) will also benefit from the user-friendly interface. I liked how well organised the navigation bar is, with all the features clearly signposted, giving you quick and painless access to any essential tool you need.

Screenshot of the timer on FreshBooks

You can use FreshBooks’ precise time tracking to convert billable hours into invoices. Source: Startups.co.uk

While it might not have the most sophisticated suite of features, FreshBooks does the basics you need it to, and unlike some of its competitors, it does also provide precise time tracking for billable hours. You can turn these into invoices directly from the projects folder.

More key features:

  • Precise Time Tracking for billable hours
  • Integrate other applications with the FreshBooks AppStore
  • Mobile app for both Android and iPhone, which includes mileage tracking

What could be improved?

  • The currency settings were giving me a headache – even after I updated them in the main settings, it would revert back to different currencies on the quotes and invoices.
  • I felt the messaging function needed improvement, considering it requires both parties to make it work, in its current state clients might be put off using it.
  • While this is a good, low-cost system for new users, it lacks the advanced tools needed by a more serious outfit. It lacks the customisability of Sage’s reporting, there’s no client portal like Xero’s, and QuickBooks is a better choice for budgeting and forecasting tools.

How much does FreshBooks cost?

Swipe right to see more
0 out of 0
Plan
Plan
Plan
Cost

£15 per month

Or £162 per year

Cost

£25 per month

Or £270 yearly

Cost

£35 per month

Or £378 per year

FreshBooks, when compared to competitors, has a pretty fair cost for its plans. There’s a big additional cost to keep in mind though: it charges an eye-watering £8 per additional team member. So if you’re looking to equip a team, another provider might make more sense.

Suitable if:
  • You’re a sole trader or new business that needs the basics at an affordable price
  • You need the reassurance of all-hours help and support via a chatbot
  • You need time tracking so you can accurately invoice clients
Not suitable if:
  • You want a comprehensive mobile app to manage your financial data on the move
  • You want advanced budgeting and forecasting tools
  • You need sophisticated features, like multi-currency invoicing

What our Reviews Writer thought

What stood out to me about FreshBooks was how refreshingly easy to use and simple the interface is. I can see this would be great for sole traders who don’t have experience with this type of software.

Eddie Harris Reviews Writer

7. Clear Books

Clear Books provides MTD-compliant tax support for VAT returns, including a wide range of tax types

Clear Books
4.0
  • Starting price from: £13.50 per month
  • Free trial: 30 days
  • Well designed search function enables easy access to important information
  • Efficient and easy customisation, such as quote creation
  • Easily create new projects with helpful pop-up feature
Summary Started in 2008, ClearBooks is a UK based accounting software firm specifically designed with small businesses in mind. We feel that freelancers, as well as small businesses, could benefit from ClearBooks, mainly thanks to its easy-to-use project creation.
Show moreless

Why is Clear Books right for my business?

If your number one priority is simplifying complicated tax calculations, being able to handle a range of different tax types, and being fully equipped to submit tax returns though the Making Tax Digital initiative, then Clear Books is worthy of your attention.

You can customise Clear Books’ dashboard so it only shows the key information you need. Source: Startups.co.uk

The standout feature was the Tax Projection tool, which will give you a boost in confidence that all your upcoming payments are compliant with HMRC regulations. Outside of its tax capabilities, I also really liked the highly intuitive search function.

We felt that Clear Books is a good fit for small businesses looking for a simple accounting software. Source: Startups.co.uk

Convenience is definitely a watchword with Clear Books, and I really enjoyed the pop-up approach to project creation. Routine aspects of the software, such as filling out quotes and invoices, were also really simple – making your daily tasks really manageable.

More key features:

  • Auto Bills assists with bill and receipt entry
  • AI-powered bank imports
  • Experts provide support via telephone and email

What could be improved?

  • I felt the naming of different folders could have been much clearer, as it took me a while to find payment reminders.
  • My biggest concern about Clear Books was the very steep learning curve, and slightly frustrating onboarding process.

How much does Clear Books cost?

Swipe right to see more
0 out of 0
Plan
Plan
Plan
Cost

£13.50 per month (excl. VAT)

£6.75 per month for the first three months

Cost

£31 per month (excl. VAT)

£15.50 per month for the first 3 months (excl. VAT)

Cost

£41 per month (excl. VAT)

£20.50 per month for the first six months

Clear Books offers decent value for money, and with an entry level plan starting from just £13.50 per month, it provides a great low-cost option for being fully MTD compliant.

Suitable if:
  • You want to submit VAT returns through Making Tax Digital
  • You want to be capable of handling a range of different tax types
  • You want a fast and modern software platform
Not suitable if:
  • You want a fast onboarding process with a quick learning curve
  • You want 24/7 help and support
  • You need cash flow projection tools to help you forecast and plan effectively
What did our in-house testers think?

“I liked the look of it for one. I think it looks more modern than the other platforms and it was generally pretty easy to follow for the most part.”

“The dashboard is really clean. The accounts receivable end of it is really straightforward, so it’s really easy to find out who owes you money and turn quotes into invoices.”

“I liked that there was an account where I could see how much money I had in the bank so I could pay an expense. It showed how the platform operates in running a business.”

Buying guide: How to choose the right accounting software for your small business

Before making a decision on the accounting software you’ll be using, here are the top 10 factors you should be considering:

1. Pricing: make sure what you’re paying for makes sense for your business. There’s no point going for the cheapest option available if it doesn’t have the features that are vital to your business model.

2. Scalability: you’ll need software that can support your business as it grows. Make sure your chosen plan aligns with your financial goals, and there are more advanced plans you can upgrade to if needed in the future.

3. Bookkeeping: efficient bookkeeping is the central function of accounting software. Look for products that simplify the recording and categorisation of transactions.

4. Accounts payable: managing payments is crucial for SMEs. Look for features that streamline invoice processing, support timely payments, and provide insights into cash flow.

5. Accounts receivable: you’ll need software that allows smooth invoicing, helps track customer payments, and provides reminders for overdue invoices.

6. Financial reporting: choose software that offers a range of customisable reports. Access to real-time insights will help successful strategic financial planning.

7. Integrations: seamless integration with banking, payment gateways, and CRM systems enhances efficiency as you can share relevant information across multiple systems.

8. Usability: you’ll want a modern system with a slick, well-designed interface. Poorly-designed systems can slow your operation down, and possibly even result in admin errors.

9. Mobile capabilities: a user-friendly app lets you access key financial information and perform essential tasks anywhere; essential for SME owners on the move.

10. 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.

Now you know what to look out for in a good accounting software, we’d recommend using our free cost comparison tool to help you find one that’s the best fit for your business’s budget.

In summary

As a result of our in-depth testing, we chose Zoho Books as our number one recommendation for small businesses needing accounting software. Zoho Books is fairly priced, has seamless inventory tracking, a comprehensive mobile app, and a range of features to boost your efficiency.

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. For example, a more established business with experienced accountants will most likely get the most out of a software like Xero.

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.

Written by:
Eddie is resident Reviews Expert 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:
Olivia Bond profile photo
Olivia is driven by a deep curiosity about what makes people tick and the underlying factors that shape our decisions and behaviours. She honed her qualitative and quantitative skills with a degree in Psychology from UEA, while also contributing to an 18 month project to improve neurodevelopmental diagnostic assessments; an endeavour with potentially life-changing results for some. She now applies the same degree of care to the professional environment, assessing how managers and employees interact to support potentially game-changing results in business. Her core interest in human behavior guides her approach to every project, revealing the true reasons behind effective workplace processes, and ensuring her findings when assessing key products and industries are both truly accurate and deeply insightful. Olivia is dedicated to rigorous research practices, and strives to help business owners find the most reliable solutions to drive the best outcomes for their needs.
Back to Top