The Best Bookkeeping Software in the UK 2025

If you’re a business owner, freelancer, or self-employed individual in the UK you know the importance of finding the best bookkeeping software for your needs. The right bookkeeping software can make your financial management simpler, faster, and more efficient, giving you more time to focus on what you do best: running your business.

With so many options available, how do you choose the best bookkeeping software for your needs? In this blog, we’ll review some of the leading bookkeeping software in the UK, including Xero, QuickBooks, FreeAgent, Sage, FreshBooks, and other top contenders to help you find the perfect fit.

Why Good Bookkeeping Software Matters

Before we dive into the reviews, let’s quickly recap why having good bookkeeping software is essential. A solid bookkeeping system allows you to:

• Track income and expenses in real time;
• Manage invoices, payments, and cash flow efficiently;
• Stay compliant with HMRC’s regulations, including Making Tax Digital (MTD);
• Simplify tax returns, VAT submissions, and financial reporting; and
• Reduce the likelihood of errors and missed deadlines.

Now, let’s explore the top bookkeeping software options in the UK market!

1. Xero: Best for All-Round Functionality

Overview

Xero is one of the most popular bookkeeping software options in the UK, particularly for businesses and self-employed individuals. It offers a robust suite of features, including invoicing, bank reconciliation, expense tracking, and VAT submission.

Key Features

• Bank Reconciliation: Real-time bank feed integration makes reconciling your transactions quick and easy.
• Customisable Invoicing: Create and send professional invoices, track payments, and set automated reminders for overdue payments.
• Comprehensive Reporting: Detailed financial reports, including profit and loss statements, cash flow forecasts, and balance sheets.
• Making Tax Digital (MTD) Compliance: File VAT returns directly to HMRC in compliance with MTD regulations.

Pros

• User-friendly interface with an intuitive dashboard.
• Extensive integrations with third-party apps like Stripe, PayPal, and HubSpot.
• Suitable for businesses of all sizes and industries.

Cons

• Advanced features might come with a learning curve for beginners.
• Pricing can be higher than some competitors for premium plans.

Pricing

Plans start from £14/month (Early plan), with more advanced plans available for growing businesses.

Our Verdict

Xero is an excellent all-rounder, offering powerful features suitable for a range of business sizes and industries. Its MTD compliance and real-time financial insights make it a top choice for businesses looking to streamline their bookkeeping.

2. QuickBooks: Best for Ease of Use

Overview

QuickBooks by Intuit is another leading bookkeeping solution tailored for businesses. Its straightforward interface, coupled with powerful features, makes it easy for even the least tech-savvy users to manage their finances.

Key Features

• Automated Invoicing: Create, send, and track invoices, with automatic payment reminders.
• Expense Tracking: Easily capture receipts and categorise expenses to monitor your business spending.
• VAT Submission: Automatically calculate VAT and file returns directly to HMRC.
• Cash Flow Management: Built-in cash flow projections help you manage your business’s finances effectively.

Pros

• Extremely user-friendly with a simple dashboard.
• Strong mobile app for on-the-go bookkeeping.
• Affordable pricing options.

Cons

• Some advanced features, such as payroll, may require additional costs.
• Limited integrations compared to Xero.

Pricing

Plans start at £12/month for the Simple Start plan, with more advanced plans for businesses with growing needs.

Our Verdict

QuickBooks is a fantastic option for business owners looking for an easy-to-use, cost-effective bookkeeping solution. Its intuitive interface and excellent mobile app make managing your finances a breeze.

3. FreeAgent: Best for Self-Employed and Freelancers

Overview

FreeAgent is a cloud-based accounting software specifically designed for businesses, freelancers, and contractors in the UK. Its user-friendly interface simplifies everything from invoicing to expense tracking and tax management.

Key Features

• Self-Assessment and Tax Calculation: Automatically calculate your Self-Assessment liabilities, including Income Tax and VAT.
• Project Management: Track time and expenses for projects, making it perfect for freelancers who bill by the hour.
• Real-Time Bank Feeds: Import bank transactions automatically and match them to your records for easy reconciliation.
• MTD Compliance: File VAT returns directly to HMRC, ensuring you stay compliant with MTD.

Pros

• Tailored features for freelancers and self-employed individuals.
• Excellent tax management tools, including Self-Assessment.
• Inclusive pricing—unlimited users, clients, and projects.

Cons

• Less suited to larger or more complex businesses.
• Limited integration options compared to Xero and QuickBooks.

Pricing

Fixed pricing at £14.50/month (first six months, then £29/month). FreeAgent is also included with certain business bank accounts like NatWest and Royal Bank of Scotland.

Our Verdict

FreeAgent is perfect for freelancers, contractors, and businesses looking for a straightforward tool that simplifies self-employment tax and project tracking.

4. Sage Business Cloud Accounting: Best for Established Businesses

Overview

Sage has a long-standing reputation in accounting software and provides comprehensive features designed to support businesses at all stages. Sage Business Cloud Accounting offers flexible solutions to manage invoicing, expenses, cash flow, and VAT.

Key Features

• Invoicing and Payments: Create, send, and track invoices, with the ability to accept payments directly from the invoice.
• Expense Management: Track business expenses, categorise them, and link them to specific projects or clients.
• Cash Flow Forecasting: Get real-time cash flow insights and projections to make informed financial decisions.
• MTD Compliance: Submit VAT returns in line with MTD regulations.

Pros

• Trusted and established brand with robust support.
• Scalable plans suitable for businesses as they grow.
• Excellent integration with other Sage products and financial institutions.

Cons

• The interface can feel dated compared to newer cloud-based competitors.
• Higher price point for advanced features.

Pricing

Plans start from £12/month for the Start plan, with more advanced options available.

Our Verdict

Sage is ideal for established businesses needing reliable, feature-rich accounting software that grows with them.

5. FreshBooks: Best for Invoicing and Client Management

Overview

FreshBooks is designed primarily for service-based businesses and freelancers who need to track billable hours, manage client invoices, and monitor expenses.

Key Features

• Customisable Invoicing: Easily create professional-looking invoices, set up recurring billing, and accept online payments.
• Time Tracking: Track billable hours and link them to specific clients or projects.
• Expense Management: Capture expenses on the go with the FreshBooks mobile app.
• Reports: Generate financial reports, including profit and loss statements and tax summaries.

Pros

• Simple, intuitive interface.
• Strong invoicing and time-tracking features.
• Flexible payment options for clients.

Cons

• Limited to service-based businesses; less suitable for retail or inventory-based businesses.
• Some advanced accounting features, such as double-entry bookkeeping, are less robust.

Pricing

Plans start at £11/month for the Lite plan, with options for higher-tier plans depending on your needs.

Our Verdict

FreshBooks is perfect for freelancers and service-based businesses looking for a straightforward way to handle invoicing, time tracking, and client management.

Other Noteworthy Options

• Zoho Books

Zoho Books offers comprehensive accounting features, making it an excellent option for businesses that already use Zoho’s suite of business tools. With capabilities like automated invoicing, expense tracking, and bank reconciliation, it’s a cost-effective choice for many businesses.

• KashFlow

KashFlow is a UK-based bookkeeping software with features tailored to businesses, including VAT submission, automated invoicing, and integration with HMRC. It’s designed to be straightforward, making it a good option for beginners.

Final Thoughts: Which Software is Right for You?

The best bookkeeping software for your business depends on your specific needs. For comprehensive, all-around features and integrations, Xero is a top choice. If you’re seeking ease of use and mobile-friendly functionality, QuickBooks is a strong contender. FreeAgent is perfect for freelancers and self-employed individuals who need simplified tax calculations, while Sage is ideal for more established businesses. FreshBooks excels in invoicing and time-tracking, making it great for service-based professionals.

However, software is very subjective based often a factor of what you are used to. Most of the above offer free demons and we highly recommend you take advantage of this, to work through them and see which best suits you and your business. There are also Apps which can be added onto the above software’s to provide even more functionality and features to help your business thrive.

Need Help Choosing?

If you’re still unsure which software is the best fit for your business, we’re here to help. As a firm of accountants specialising in supporting individuals, and businesses, we can guide you in selecting and setting up the right bookkeeping system. We are also partners of Xero, QuickBooks and FreeAgent, so not only can we offer you better pricing on the software, we can also unlock more help and support for you and your business. Contact us today to find the best solution for your business needs.