The six best cloud accounting software packages for small business in the UK
Small business owners can be forgiven for being confused about which cloud accounting software packages might work best for them. There are many accountants who’ll only work with clients on a certain package such as Xero or FreeAgent. At Adams Accounting, we’re more flexible with our clients. We understand not all businesses work the same way. Your business is unique and you need a cloud accounting software package that meets the demands of your ways of working. So we work with Xero, Sage, QuickBooks and FreeAgent to ensure clients get the best tailored service possible.
If you’re a startup business, or if you’ve been using a package that doesn’t suit your business well, you might be at the point where you need to decide which package to use.
It’s overwhelming, so let’s look at some of the best accounting software options for small business in the UK, highlighting their features, downsides and pricing options.
QuickBooks Online
Features: QuickBooks Online offers robust features such as payroll, invoicing, employee time tracking, and business mileage tracking. It integrates seamlessly with major UK banks and platforms like PayPal and Wise.
Downsides: The starter plan lacks features for VAT-registered businesses, and additional features may require extra costs.
Best Suited For: Ideal for sole traders and very small businesses due to its comprehensive capabilities.
Pricing Options:
- Self-Employed: £25 per month
- Simple Start: £35 per month
- Essentials: £65 per month
- Plus: £99 per month
- Advanced: £235 per month
Xero
Features: Xero provides scalable plans with features for basic accounting and time-saving tools. It offers unlimited user access and automated bank reconciliation.
Downsides: Higher-tier plans can be costly for very small businesses.
Best Suited For: Small businesses that need scalability and multiple user access.
Pricing Options:
- Starter: £15 per month
- Standard: £30 per month
- Premium: £42 per month
- Ultimate: £55 per month
Sage 50cloud
Features: Sage 50cloud includes inventory management, custom reports, and MTD compliance. It integrates with Microsoft Office 365.
Downsides: Resource-heavy, lacks mobile apps, and has a dated interface.
Best Suited For: Businesses with advanced accounting needs and inventory tracking.
Pricing Options:
- Starter: £15 per month
- Standard: £92 per month
- Professional: £186 per month
FreshBooks
Features: Known for its invoicing, project management, and proposal features, FreshBooks is user-friendly and ideal for freelancers.
Downsides: Less feature-rich for larger businesses, with a focus on project management.
Best Suited For: Freelancers and very small businesses needing simple accounting with strong invoicing capabilities.
Pricing Options:
- Lite: £15 per month
- Plus: £25 per month
- Premium: £35 per month
Zoho Books
Features: Zoho Books offers cloud-based tools with seamless integration with Zoho Suite products.
Downsides: Limited benefits for those not using Zoho products.
Best Suited For: Businesses using other Zoho Suite products.
Pricing Options:
- Free: £0 per month
- Standard: £10 per month
- Professional: £20 per month
- Premium: £25 per month
FreeAgent
Features: FreeAgent provides invoicing, expense tracking, MTD-compliant VAT filing, and AI-powered transaction suggestions.
Downsides: Limited accounting reports and extra charges for mobile receipt plans.
Best Suited For: Small businesses, freelancers, and contractors, especially those banking with NatWest, RBS, Ulster Bank, and Mettle.
Pricing Options:
- Free: £0 per month (with certain bank accounts)
- Landlord: £10 per month
- Sole trader: £19 per month
- Partnership: £27 per month
- Limited company: £33 per month
So, you can see there are a range of options to suit different budgets and functionality requirements. If you are a very small business, it’s best to keep things as simple as possible when it comes to your accounting software.
As your business grows, there may come a point where you need to use an enterprise level tool. At this point, you’ll most likely have in-house finance and IT teams that can help manage the implementation and configuration of these packages.
Summary of cloud accounting software packages for small/medium businesses.
| Software | Features | Best Suited For | Downsides | Pricing Options |
| QuickBooks | Payroll, invoicing, time tracking, mileage tracking | Sole traders and very small businesses | Lacks features for VAT-registered businesses in starter plan | £25 to £235/month |
| Xero | Scalable plans, unlimited user access, bank reconciliation | Small businesses needing scalability | Costly higher-tier plans | £15 to £55/month |
| Sage 50cloud | Inventory management, MTD compliance, Office 365 integration | Advanced accounting needs, inventory tracking | Resource-heavy, lacks mobile apps | £15 to £186/month |
| FreshBooks | Invoicing, project management, proposals | Freelancers and very small businesses | Less feature-rich for larger businesses | £15 to £35/month |
| Zoho Books | Cloud-based tools, Zoho Suite integration | Businesses using Zoho Suite | Limited benefits without Zoho products | £0 to £25/month |
| FreeAgent | Invoicing, expense tracking, AI transaction suggestions | Small businesses and freelancers with specific bank accounts | Limited reports, extra charges for mobile receipt plan | £0 to £33/month |
Contact Adams Accountancy
Get support for your cloud accounting software package decision
Choosing the right accounting software depends on your specific business needs, size, and budget. Each of these options offers unique features and benefits, making them suitable for different types of small businesses in the UK.
The Adams Accountancy team works with a wide range of businesses, all with differing needs. Maybe we already work with a business like yours? Call us on 01322 250 001 for a free chat about how we could make your life easier using the right tool for your business needs.
