The Most Best Accounting Software for Small United Kingdom Businesses 2022

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Accounting software is better than spreadsheets or a paper-based system for even the tiniest firm. It not only makes managing your company’s finances simpler, but it also makes it possible for you to complete and file your tax and VAT returns more quickly.

But how can you pick the best plan for your company when there are so many options available?

The majority of the top accounting software programmes are made to assist you in managing business costs and revenue, generating invoices, and sending financial information regarding your organisation. But there are some specific characteristics you would want to watch out for. Do you prefer a desktop or cloud-based accounting solution, for instance?

The majority of individuals would seek out the top online accounting software in 2022 as this makes it easier to run a business remotely by allowing you the flexibility to work on your bookkeeping whenever you want and from anywhere. In addition, the majority of desktop accounting programmes for small businesses will soon be phased out.

If you don’t know much about accounting, you’ll probably choose a package that is easier to use because you won’t want to spend a lot of time configuring it or looking for necessary features.

The top accounting programme in the UK 2022

Over the past year, there has been a lot of discussion about automation and cash flow management, and for good reason. These elements ought to be at the top of your list of necessities, even for a tiny firm. Many SMEs have survived these epidemic times by being able to estimate and predict their financial reserves.

Recurring invoices and automated overdue alerts are excellent time-saving tools to use in pursuing unpaid payments. It’s also possible to accept payments online. The same is true for quickly converting bids into invoices, however not all small business accounting software offers this function.

Likewise, real-time information updating software direct bank feeds will do away with the need for fresh data to be manually entered.

UK’s medium-sized businesses should use the best accounting software.

Life will be much simpler if payroll and incoming and outgoing payments can be processed together. For larger organisations that need to link with POS systems, e-commerce, ERP, CRM, email marketing, and Google apps, third-party connectivity will work well. One more thing that not all packages provide.

While consultants and service providers may want to seek for a time-tracking tool to conveniently record and invoice billable hours, manufacturers will benefit from the ability to track inventory levels.

When selecting the best accounting software programme, tax preparation is one feature that almost every business will find handy. Being able to automatically compute your tax and submit your statutory returns to HMRC is a terrific tool to look out for.

Which small business accounting software is best for you?

Which should you choose, then? Here is a brief review of some of the top accounting programmes for small businesses.

1. Xero

The best small business accounting programme in the UK is Xero.
The first online accounting system to gain popularity among small firms was Xero, and for good reason. At BrooksCity, this is also how we set up all of our new clients.

The beauty of Xero is that it can adapt to your needs and develop alongside you no matter what kind of business you run. They have more than 800+ third-party business app integrations, which is in part responsible for this.

They provide everything you require to complete your accounting, and they put a strong emphasis on automation to help you save valuable administrative time. Who, after all, doesn’t require more time now…

It’s simple to set up online billing, automatic payments, and cordial reminders for past-due invoices. Thanks to Xero’s clever matching technology, which imports and categorises transactions for you, you can link your bank and reconcile statements in a matter of seconds.

Using their mobile app, which is accessible on both iOS and Android, you can view your financial information from anywhere. To create cost claims while on the go, you can even submit invoices and scan receipts.

2. Quickbooks

The best accounting programme for medium-sized businesses in the UK is Quickbooks.
One of the market leaders in cloud accounting, QuickBooks has more than 4.5 million users globally. All of this is possible because to their cutting-edge and user-friendly platform. For instance, you may organise weekly timesheets, track bank deposits using real-time transaction data, and rapidly download and reconcile credit card transactions.

Users can scan receipts and bills and share them with the relevant stakeholders or submit them as evidence of spending. To create invoices, bills, and reports, it includes editable templates that may be branded with the company logo and the appropriate information. Additionally, your invoices are pay-enabled, allowing you to quickly take payments online and send annoying reminders to late payers.

QuickBooks is also MTD compliant thanks to their Smart ScanTM technology, you can now check for errors on your VAT return before submitting it. Additionally, you can now automate a variety of procedures by connecting to more than 700+ business apps.

You may set up payroll in minutes and it is immediately integrated. With their smart payroll, you may automate your entire pay run and receive total compliances, even for complicated schemes, CIS, salary sacrifice, or even court order deductions.

3. Sage Business Cloud Accounting

Simple cloud accounting software available in the UK is Sage Business Cloud Accounting.
Sage One was previously known as. It works well for start-ups, small enterprises, independent contractors, or anyone who only needs a straightforward accounting system with invoice, tax, and profit and loss data. It is quite simple to use and only needs a basic understanding of accounting.

If you require assistance, there is chat, phone, and email support. The Sage Business Community also offers additional assistance. In order to automate your accounting workflow, they now provide over 100 connectors with various apps as of 2021. anything that wasn’t there before. Additionally, it is significant to note that they are fully compatible with Making Tax Digital (VAT), RTI, auto-enrolment, and GDPR.

Best free accounting software for small business UK

You might also take into account a free cloud-based option for small businesses, like Bokio. Although their service can be rudimentary, it might work for you if you only have a few transactions.

1. Pandle

The best free cloud accounting programme is Pandle.

Pandle can be a good alternative for your company if your needs are now modest but you eventually desire something with more features. With the exception of more sophisticated services like bank feeds, receipt upload, cash flow predictions, and others, which are included in a subscription plan that costs £5 + VAT per month, they provide a free forever plan that offers unlimited access to everything. They also adhere to MTD standards.

General Data Protection Regulation (GDPR) and Brexit Update

Brexit and General Data Protection Regulation (GDPR) Update
The General Data Protection Regulation (GDPR) of the EU went into force on May 25, 2018. Businesses have greater responsibilities in how they handle, manage, and keep personal information as a result of these new regulations.


The UK has decided that the GDPR will be incorporated into UK domestic law as part of the separation agreement, despite the impending Brexit. You will observe the GDPR and the current Data Protection Act of 2018 cooperating on privacy cases. The UK will continue to be held to the same standards even after it leaves the EU.

The majority of significant accounting platforms have already shown that they are compliant. However, given that you work with delicate information like client personal data.

Choosing the best accounting software for your business

Utilizing the available free trials is the only method to determine which platforms might work for you since some may suit you better than others. Choose two or three packages, test them out, and decide which is best for you.

You might also want to speak with your accountant before committing to any particular plan. They are knowledgeable about your industry and can advise you on the accounting programmes that will best serve your needs.

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