<Home
  • HomeBreadcrumb separator
  • Accounting software

Accounting software

Compare accounting software for your business

Powered by

Our partner money.co.uk can help you find the right accounting software.

  • Compare leading UK accounting software

  • See pricing and features side by side

  • Find the best solution for your small business

What is accounting software?

Buried in numbers? Struggling to work out your net profit from your allowable expenses? Accounting software helps businesses like yours keep track of cash.

You can use it to: 

  • Record sales

  • Log expenses

  • Send invoices

  • See what’s coming in or going out

In short - it straightens out your business finances in a sensible way.

Some accounting software can also help with tax, payroll, cash flow and financial reports too. That means fewer spreadsheets, fewer mystery numbers and fewer frantic hunts for missing receipts. 

It can suit any type of business - from sole traders to large companies. The right option depends on how much support you want and how anti-admin you are.

How does accounting software work?

Accounting software takes day-to-day money-related admin and turns it into something easier to manage.

You enter or upload your financial info, then the software sorts everything into the right categories. So sales go one way, expenses go another - making everything a bit less chaotic.

Many accounting software platforms use bank feeds to bring in transactions automatically. That means you can match payments to invoices, attach receipts and spot anything that looks out of place early.

The software can also pull everything together into reports or tax summaries (a major helping hand with Making Tax Digital). That means less digging through folders and more knowing what’s going on.

Types of accounting software

Cloud-based accounting software

Cloud-based software lets you manage your accounts online. You can usually access it from a laptop, tablet or phone. It can be handy if you work from different places, share access with an accountant or enjoy not being tied to one old office computer.

Desktop accounting software

Desktop software is installed on a specific computer. It may appeal if you prefer keeping data on one machine or you have little need for remote access. Just remember that updates and backups are less flexible with this option.

Free accounting software

Free accounting software can help with basic tasks - such as tracking income, logging expenses and sending invoices. So, if you’re running a small business with simple needs, it might be worth considering. 

The catch is that features can be limited - because sadly free things tend to come bundled with some restrictions.

Paid accounting software

Paid software usually offers more features, support and automation – the more you pay, the more you get. It can help with VAT, payroll, reporting, receipt capture and integrations with other HR tools too. This can be useful if your business is growing or you’re getting busier.

Types of accounting software

Cloud-based accounting software

Cloud-based software lets you manage your accounts online. You can usually access it from a laptop, tablet or phone. It can be handy if you work from different places, share access with an accountant or enjoy not being tied to one old office computer.

Desktop accounting software

Desktop software is installed on a specific computer. It may appeal if you prefer keeping data on one machine or you have little need for remote access. Just remember that updates and backups are less flexible with this option.

Free accounting software

Free accounting software can help with basic tasks - such as tracking income, logging expenses and sending invoices. So, if you’re running a small business with simple needs, it might be worth considering. 

The catch is that features can be limited - because sadly free things tend to come bundled with some restrictions.

Paid accounting software

Paid software usually offers more features, support and automation – the more you pay, the more you get. It can help with VAT, payroll, reporting, receipt capture and integrations with other HR tools too. This can be useful if your business is growing or you’re getting busier.

What type of features should I look for?

The best accounting software should make money admin easier - not give you a new hobby you never asked for. Here are five features worth looking for.

Invoicing

Look for software that lets you create, send and track invoices. Even better if it can send reminders when customers drag their feet.

Expense tracking

Choose software that makes it easy to log costs and upload receipts so your finances are tidy for tax deadlines.

Bank feeds

Bank feeds pull transactions from your business account into the software. Less typing and fewer mistakes mean more time for you to focus on the important things.

Tax and VAT tools

If you’re VAT registered, check whether the software can help prepare and submit VAT returns. Also look out for software that’s compatible with MTD requirements.

Reporting

Look for software that gives clear reports on profit, cash flow and unpaid invoices.

What are the pros and cons of business accounting software?

Pros

Helps keep your business finances organised
Saves time on invoices, expenses and reports
Can reduce manual errors and spreadsheet confusion
Makes it easier to share records with your accountant and HMRC

Cons

Monthly costs can add up over time
Some platforms take time to learn and master
You still need to enter and check information properly
More advanced features may cost extra

What our small business expert says

“Accounting software can save time, but only if it fits how your business actually works. Choose something that handles your everyday admin with ease - then keep everything up to date. ”
Author image
Alex Ryde
SME Product Specialist
brand-logo

Need more help?

Do I need accounting software for my business?

Not always, but it can make life much easier. It helps you track money, manage records and avoid complicated spreadsheets to keep admin at a minimum.

Can sole traders use accounting software?

Yes. Many platforms are built exclusively for sole traders and small businesses - with tools for invoices, expenses and MTD compliant tax records.

Is free accounting software good enough?

It can be if your needs are simple. Paid software usually gives you more features, support and room to grow – but not every business needs all the bells and whistles.

Can accounting software help with tax?

Yes, many platforms can help organise tax records, prepare VAT returns and track what you owe. It’s still important to double check the numbers though.

Do I still need an accountant?

Possibly. Accounting software helps with the day-to-day admin - but an accountant can offer tailored advice and help with bigger picture decisions.

Page last reviewed: 11/05/2026

Reviewed by: Alex Ryde