Best small business accounting app UK

Small business accounting apps can helps you manage everything, from your financial reporting through to payroll processing.

You can use the accounting app to easily track expenses and gain better insight into your financial health. When you’re starting a new business on a shoestring budget, this is essentials.

There are a wide range of options you can choose from when it comes to accounting apps – here’s some of the best accounting apps you can use if you’re a small business.

Intuit QuickBooks Online: Best for Small Businesses

QuickBooks Online provides accounting features that meet business needs for all sizes, but it’s especially good for small businesses.

This is because it’s a simple accounting software to use that’s very easy to navigate, and it’s very easy to use with other software too – integration is painless, whether with Stripe, Shopify or something else.

Quickbooks includes the ability to create invoices for your clients and sending or receiving payment, but it’s also good for managing expenses too.

Currently, it is widely adopted by small business owners across the UK, and is often praised for its simplicity, affordability and effectiveness. It’s cheap enough to get set up with a basic plan in the app.

The only potential downside of Quickbooks online is that it isn’t great for e-commerce, due to the lack of barcode scanning and lot tracking.

However, aside from this it’s the perfect accounting software for small businesses and in our opinion, the best accounting app to opt for.

FreshBooks Accounting Software: Best for Invoicing

FreshBooks is another great option that lets you create invoices and pay them automatically as you get paid.

You can use all of the accounting features within the Freshbooks app, from time and expense tracking to financial reporting. It has a clean and simple layout, which any small business owner can get used to after using it for a while.

Getting your invoices done is pretty painless with Freshbooks, and it may be the easiest accounting software to get started with. The customer support that Freshbooks offers is the best on the market too.

Many systems excel with invoices and offer no accounting features; others offer a robust accounting service that lacks good invoicing tooling.

FreshBook is able to achieve both of these pretty well, though it still excels as an invoicing software above all else – it’s very easy to integrate with your PayPal Business account.

When adding multiple people to your account, the cost can become higher. This is the drawback of using Freshbooks – is an amazing accounting software for freelancers, but as you grow the limits can become costly and frustrating.

So overall, Freshbooks is great if you’re a solo small business that’s just started operating – using it for your first few years is a great idea.

But as the smaller plans only allow up to five clients, you may need to upgrade sooner rather than later.

Xero: Best for Growing Businesses

The Xero platform is worth checking out if you want a proven accounting software that can help you with inventory management, creating invoices and ultimately submitting all of this to the HMRC at the end of each tax year.

It has a steeper learning curve than those previously mentioned, meaning that it can be overwhelming to novices. However, if you have some experience with cash flow, sales tax and accounting previously, it’s a great accounting software for small business.

Though the app can be complex, it’s actually fairly easy to get started with submitting your expenses – it’s great for expense tracking with simple categorisation depending on what you submit.

The app is Cloud based, meaning you don’t need to worry about lots of space being taken up on your smartphone or computer. It has a clean interface and is relatively easy for managing amongst a team.

The reason why we recommend FreshBooks and Quickbooks above Xero is that they’re a little easier to use. So, although Xero would be perfectly fine for a small business accounting software, it may be overkill – though it’s still a great app.

Common Questions about Accounting Apps

What is accounting software?

An accounting software or application enables a business to track its financial transactions and gives you a structure to your finances.

Basic accounting apps include accounts payables and receivables, billing and record keeping, debt collection expenses, timesheets, purchase reconciliations, payroll, and more.

The smaller your business, the less need you have for these more advanced accounting software features – we recommend you stay basic if you have 10 or less people on your team, and only look to level up when you pass this.

Tell me the pros and cons of accounting apps?

Accounting apps make all of your financial data immediately accessible, enabling you to have centralised access to it whenever you want.

It’s not necessary for a person to know all the financials of their business, but having access to an app allows you to log your expenses as and when you have them, which can prove to be extremely advantageous in the long run.

Is an account app as good as an accountant?

Using accounting tools such as those mentioned above helps businesses keep track of their financial affairs easily.

For most small businesses, using an accounting app is a perfectly fine solution for keeping your accounts up-to-date. Of course, accounting services can still be helpful to a lot of businesses, as they’ll provide a more thorough service.


Small businesses often face challenges in maintaining the financial records of their operations, but the right app can make this a lot easier.

As you look into your money, you will find it easier to plan for the future of your business. Fingers crossed, our review helps you to find the best accounting application for your small business so you can keep the tax man (or woman) happy.

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Edward brings years of experience in a variety of different fields including online marketing & No-code app development, and he's been investing in stocks and cryptocurrency since 2016. Outside of work you'll usually find him watching movies at the local cinema or playing games in the Apple Arcade.

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