Looking out for a good accounting software that is just right for your small business?
As we step into 2025, the landscape of accounting software has evolved significantly, offering small business owners like you a plethora of options designed to simplify financial management.
With the right tools, you can streamline your accounting processes, gain valuable insights, and ultimately drive growth.
A good accounting software can handle much of the heavy lifting, whether it’s sending invoices, tracking expenses, or preparing for tax season, keeping your financial records accurate and up-to-date.
As you consider the options available in 2025, it’s essential to choose software that aligns with your business needs.
In this blog post, we will explore the top five accounting software solutions tailored for small businesses. We’ll also delve into the criteria you should consider when making your selection to ensure you find the perfect fit for your financial management needs.
Key Features to Look for in Accounting Software for Small Businesses
Choosing the right accounting software involves more than just picking a popular name—it’s about finding a tool that matches your business needs.
Here are the core features to prioritise when selecting accounting software:
- User-Friendliness
The first criterion is user-friendliness. As a small business owner, you may not have extensive accounting knowledge or experience. Therefore, selecting software with an intuitive interface is crucial. A user-friendly platform allows you to navigate easily through its features without feeling overwhelmed. Look for software that offers tutorials or customer support to assist you in getting started.
- Features
Next, consider the features offered by each software solution. Essential functionalities include invoicing, expense tracking, bank reconciliation, and financial reporting. Some platforms also provide advanced features such as project management tools or time-tracking capabilities. Assess which features are most relevant to your business operations and ensure the software can accommodate them.
- Cost
Cost is another important factor in your decision-making process. Accounting software comes in various pricing models—some charge monthly subscriptions while others may require a one-time purchase fee. It’s essential to evaluate your budget and determine which pricing structure aligns with your financial capabilities. Keep an eye out for introductory discounts or free trials that many providers offer.
- Integration
Integration capabilities are also vital when selecting accounting software. Your chosen solution should seamlessly connect with other tools you use in your business, such as customer relationship management (CRM) systems or e-commerce platforms. This integration will help streamline operations and ensure all aspects of your business work together efficiently.
- Customer Support
Finally, consider the level of customer support provided by the software vendor. Reliable customer support can be invaluable when you encounter issues or have questions about using the software effectively. Look for vendors that offer multiple support channels such as live chat, email assistance, or phone support.
By carefully evaluating these criteria—user-friendliness, features, cost, integration capabilities, and customer support—you’ll be well-equipped to choose accounting software that meets your small business needs in 2025.
Software #1 – QuickBooks Online
QuickBooks Online has long been a favourite among small businesses, and for good reason—it offers a range of comprehensive features that cater to all aspects of financial management.
Designed with small to medium-sized businesses in mind, QuickBooks Online provides everything you need to stay on top of your finances, from invoicing and expense tracking to detailed reporting and tax management.
Why QuickBooks Online?
QuickBooks Online is known for its ease of use and flexibility, making it ideal for businesses that need a full-featured accounting solution. It’s particularly beneficial for small businesses looking for software that can scale with them as they grow.
The platform is cloud-based, allowing you to access your financial data from anywhere with an internet connection—a huge advantage for business owners on the go.
Key Features
- Invoicing: QuickBooks Online makes invoicing simple and professional. You can customise invoices, send them directly to clients, and set up automatic reminders for unpaid bills.
- Expense Tracking: The software offers real-time expense tracking, allowing you to categorise expenses, link bank accounts, and manage receipts with ease. This feature is invaluable for keeping tabs on spending and budgeting effectively.
- VAT and Tax Support: QuickBooks Online includes built-in VAT and tax management features. For UK businesses, the software can calculate VAT automatically and integrate directly with HMRC, streamlining the tax filing process.
- Payroll Integration: If you have employees, QuickBooks Online offers seamless payroll integration, enabling you to manage salaries, deductions, and other payroll needs while staying compliant with UK regulations.
- Customisable Reporting: QuickBooks provides a range of customisable reports, such as cash flow statements, profit and loss statements, and balance sheets. These reports give you clear insights into your business’s financial health, empowering you to make informed decisions.
Pricing and Plans
| Package | Price | Features |
| Basic | £14/month | 1 user, expense tracking, invoicing, tax help |
| Essential | £26/month | 3 users, additional sales channels |
| Plus | £39/month | 5 users, project profitability features |
| Advanced | £90/month | 25 users, advanced reporting, dedicated support |
QuickBooks Online is ideal for small businesses seeking an affordable yet powerful accounting solution that covers all essential financial management aspects.
How to Get Started with QuickBooks Online
To begin with QuickBooks Online, simply sign up through their website. The setup process is straightforward, with guided tutorials and customer support available to assist you. Plus, the platform offers an extensive range of resources, including online tutorials and a responsive customer service team.
Software #2 – Xero
Xero is an excellent choice for small businesses that anticipate growth and need a software solution that can scale with them. Known for its cloud-based accessibility and user-friendly interface, Xero caters to a wide range of business sizes, making it a reliable option for small businesses that plan to expand.
Why Choose Xero?
Xero is ideal for businesses that need flexibility in managing finances, offering tools that support multi-user access and integrations with numerous third-party apps.
This adaptability means that as your business grows, Xero’s ecosystem can evolve with it. Xero’s intuitive dashboard allows business owners to view financial data at a glance, providing insights into cash flow, invoices, and account balances.
Key Features of Xero
- Multi-User Access: Xero allows multiple users, making it suitable for teams and growing businesses. You can assign specific permissions to different team members, ensuring secure access for roles such as payroll, invoicing, or expense tracking.
- Inventory Management: For small businesses with physical stock, Xero’s inventory management feature is a valuable tool. It helps you track stock levels, see how items are moving, and generate inventory-related reports.
- Automatic Bank Feeds: Xero connects directly to your bank accounts, providing automatic feeds that update transaction data in real time. This feature simplifies reconciliation and ensures your financial records are always up-to-date.
- Comprehensive Reporting: Xero offers a variety of reports, including cash flow statements, profit and loss statements, and balance sheets, allowing you to monitor financial performance and make data-driven decisions.
Pricing and Plans
| Package | Price | Features |
| Starter | £2.30/month | Send up to 20 invoices |
| Standard | £4.60/month | Unlimited quotes and invoices |
| Premium | £6.20/month | Multi-currency support |
Xero is perfect for small businesses looking for advanced accounting features in a user-friendly package.
How to Get Started with Xero
To begin with Xero, visit their website and select a plan that aligns with your business’s size and goals. They offer a free trial, allowing you to explore the platform before committing. With customer support and numerous tutorials, Xero ensures you have the guidance needed to make the most of their software.
For businesses with growth ambitions, Xero provides a scalable, user-friendly solution that will keep pace as you expand, making it a strong choice for small businesses looking towards the future.
Software #3 – FreshBooks
FreshBooks is known for its easy-to-use invoicing and payment features, making it a great choice for service-based small businesses and freelancers. FreshBooks focuses on simplifying the process of creating invoices, tracking expenses, and managing payments, which is invaluable for business owners who need quick and efficient billing solutions.
Why Choose FreshBooks?
FreshBooks is particularly popular among businesses that rely heavily on invoicing and payment collection, such as consultants, freelancers, and creative professionals.
The software allows users to create customised, professional invoices, send them directly to clients, and set up automatic payment reminders. This functionality helps businesses maintain steady cash flow and ensures that payments are made promptly.
Key Features of FreshBooks
- Simple Invoicing: FreshBooks offers a range of invoicing templates that can be customised with your branding. You can set up recurring invoices for repeat clients and track each invoice’s status, so you know when it’s been viewed and paid.
- Expense Tracking: FreshBooks allows users to categorise expenses and link them to specific projects or clients, giving you a clear view of project profitability. This is especially useful for service-based businesses that need to monitor project costs closely.
- Time Tracking: FreshBooks includes a time-tracking tool, enabling businesses to log hours worked on specific projects and convert these hours directly into invoices. This feature is ideal for consultants or professionals who bill by the hour.
- Payment Collection: With FreshBooks, you can integrate with payment processors like PayPal and Stripe, making it easy for clients to pay online. Automated payment reminders can be set up to nudge clients on pending payments, improving cash flow without manual follow-ups.
Pricing and Plans
| Package | Price | Features |
| Lite | £7/month | Unlimited invoices for up to 5 clients |
| Plus | £12/month | Unlimited invoices for up to 50 clients |
| Premium | £25/month | Unlimited invoices for unlimited clients |
FreshBooks is an ideal choice for freelancers seeking robust invoicing capabilities alongside essential accounting features.
How to Get Started with FreshBooks
Getting started with FreshBooks is straightforward. Sign up on their website, customise your account with branding and invoice templates, and start tracking expenses and sending invoices. FreshBooks provides excellent customer support and a variety of tutorials to guide you through the setup process.
If your business needs a streamlined invoicing and payment solution, FreshBooks is a user-friendly platform that simplifies the billing process, making it easier for you to focus on serving clients and growing your business.
Software #4 – Sage Business Cloud
Sage Business Cloud is a reliable choice for small businesses in the UK, offering features tailored to meet local accounting standards and compliance requirements.
Sage’s suite of tools is well-suited for businesses that need a dependable accounting system with built-in support for UK-specific tasks, such as VAT and HMRC submissions.
Why Choose Sage Business Cloud?
Sage Business Cloud provides a comprehensive solution for managing finances, particularly for UK-based businesses that need support with local tax regulations and accounting practices.
The platform integrates with HMRC, simplifying the process of VAT filing and ensuring compliance with Making Tax Digital (MTD) requirements. Sage’s longstanding reputation in the UK market also means they understand the needs of local businesses, providing software that’s both user-friendly and robust.
Key Features of Sage Business Cloud
- VAT Compliance and HMRC Integration: Sage Business Cloud is designed to help UK businesses with VAT management. The software calculates VAT automatically and supports direct submission to HMRC, ensuring your business remains compliant.
- Multi-Currency Support: For businesses dealing with international clients or suppliers, Sage offers multi-currency support, enabling accurate tracking and reporting of foreign currency transactions.
- Invoicing and Expense Tracking: Like other top accounting platforms, Sage offers tools for creating invoices, tracking expenses, and categorising transactions, helping you stay on top of your finances.
- Detailed Reporting: Sage provides a range of customisable financial reports, including cash flow, profit and loss, and balance sheets. These reports give business owners the insights needed to make informed financial decisions.
Pricing and Plans
Sage Business Cloud Accounting offers competitive pricing that caters to different business needs:
| Package | Price (Per Month) | Features |
| Start | £11 | Basic invoicing, cash flow tracking |
| Standard | £22 | Advanced reporting, project tracking |
The pricing structure is straightforward, with no hidden fees or long-term contracts required. Additionally, Sage offers a free 30-day trial, allowing potential users to explore the software without any financial commitment.
How to Get Started with Sage Business Cloud
To start using Sage Business Cloud, visit their website and select the plan that aligns with your business needs. Sage offers a free trial period, so you can test the platform before committing. Their customer support and UK-based help resources provide valuable guidance during the setup process, ensuring you can start managing finances efficiently.
For UK-based small businesses, Sage Business Cloud is a well-rounded, locally focused solution that simplifies accounting and compliance, making it a dependable choice in 2025.
Software #5 – Zoho Books
Zoho Books is a powerful accounting solution that combines affordability with essential accounting features, making it an ideal choice for small businesses and startups looking to manage their finances on a budget. Known for its value-driven pricing, Zoho Books provides an impressive range of features without the premium price tag.
Why Choose Zoho Books?
Zoho Books is a great option for cost-conscious businesses that still need a robust accounting tool. With its intuitive design and comprehensive feature set, Zoho Books covers all the basics of accounting, from invoicing and expense tracking to tax compliance. It’s particularly popular among small businesses that want high functionality without a high cost.
Key Features of Zoho Books
- Affordable Invoicing and Billing: Zoho Books offers extensive invoicing capabilities, allowing users to create, customise, and send invoices with ease. You can also set up automatic payment reminders, helping to ensure timely payments.
- Expense Management: With Zoho Books, users can track expenses by category, link them to specific clients or projects, and automate expense approvals, making it easier to keep costs under control.
- Tax and VAT Compliance: Zoho Books includes VAT support, which is essential for UK-based businesses. It allows you to calculate VAT on transactions and file VAT returns directly with HMRC, helping you stay compliant.
- Automated Workflows: Zoho Books stands out with its automation features, allowing users to set up workflows for routine tasks like sending invoices, payment reminders, and updating inventory.
- Integration with Zoho Suite: As part of the larger Zoho ecosystem, Zoho Books integrates seamlessly with other Zoho applications, such as Zoho CRM, Zoho Inventory, and Zoho Projects, giving businesses an all-in-one solution.
Pricing and Plans
| Package | Price | Features |
| Standard | £11/month | Organise transactions efficiently |
| Professional | £30/month | Advanced project management features |
| Premium | £45/month | Customisation options and automation features |
Zoho Books stands out as an economical solution that offers extensive functionality for small businesses already using Zoho products.
How to Get Started with Zoho Books
You can sign up for Zoho Books through their website and choose a plan that aligns with your budget and requirements. They offer a 14-day free trial, allowing you to test the platform before committing. Zoho also provides extensive support resources, including tutorials and a customer support team that can assist you with setup and customisation.
For small businesses seeking a full-featured yet affordable accounting solution, Zoho Books is a valuable choice, enabling effective financial management without straining your budget.
Conclusion
In conclusion, selecting the right accounting software is a vital step for any small business aiming to optimise its financial management in 2025.
With numerous options available, it’s essential to consider factors such as user-friendliness, key features, pricing structures, integration capabilities, and customer support. Each of the five accounting software solutions we’ve explored—QuickBooks Online, Xero, FreshBooks, Sage business cloud and Zoho Books —offers distinct advantages tailored to various business requirements.
As you reflect on your specific needs and goals, remember that the right accounting software can streamline your processes and provide valuable insights into your financial health.
By investing time in understanding these tools and how they can benefit your business operations, you’ll be better positioned to make an informed choice that fosters growth and efficiency.
I encourage you to take the next step in enhancing your business’s financial management by exploring these accounting software solutions further. Consider signing up for free trials or demos where available; this hands-on experience will give you a clearer picture of how each platform works in practice.
If you have any questions or experiences to share about using accounting software for your small business, please leave a comment below. Your insights could help fellow entrepreneurs navigate their own journey towards better financial management.
Let’s keep the conversation going!
Meet Mo
Mo is experienced in dealing with clients from start-ups and expanding businesses for UK property investors in the retail and hospitality sector. He also brings his extensive experience in setting up and managing hotels, cafes, restaurants and rental properties across the UK to help clients achieve their business goals and succeed.
He regularly shares his knowledge and best advice here on his blog and on other channels such as LinkedIn.
Book a call today to learn more about what Mo and Monarc Finance can do for you.
