Accounting software keeps your books, invoices and tax records in one place. Which one is right depends mostly on where you operate and what your accountant already uses.
Accounting software is the system your tax return, your invoices and your monthly numbers all come from. The best choice depends less on features than on your country, your business and what your accountant already uses.
Below are six options we think suit businesses with fewer than 50 staff, from a free starter to country-specific tools. Each pick explains who it suits and where it falls short. Whichever you choose, connect your business card to it: cards such as Wallester sync with accounting tools like Xero and QuickBooks, so spend and receipts reach your books without retyping.
Best for international clients
Cloud accounting with multi-currency support, bank feeds and a large app marketplace. It is the standard choice among accountants in the UK, Australia and New Zealand, so help is easy to find.
Watch out forEntry plans have limited invoices and bills, so check the current limits against your volume.
Best for US businesses
One of the most widely used packages among US small businesses, so most bookkeepers and accountants can work in it from day one. It handles sales tax and has a payroll add-on.
Watch out forCost rises as you add users and features, and it can feel heavy for a one-person business.
Best for freelancers and small service firms
Invoicing, time tracking and expense capture in one place, built for people who bill by the hour or by project. You can use it without bookkeeping knowledge.
Watch out forIt has fewer accounting features than Xero or QuickBooks, and plans have been priced by number of billable clients.
Best if you already use Zoho
Accounting that connects to Zoho CRM, Projects and the rest of the suite, with recurring invoices and multi-currency support. Good value when the rest of your tools are already Zoho.
Watch out forFewer accountants know it than Xero or QuickBooks.
Best for UK freelancers and small companies
UK-built accounting that estimates your tax as you go and supports Making Tax Digital. Designed for freelancers, contractors and small limited companies.
Watch out forIt is built around UK rules, so it is a poor fit outside the UK.
Best free starter
Free accounting and invoicing for very small businesses, with paid add-ons for card payments and payroll. A reasonable starting point if you have a handful of clients and simple books.
Watch out forIt has fewer features and integrations than paid tools, and availability is strongest in the US and Canada.
| Tool | Choose it if you want | Its main strength | Its main limit |
|---|---|---|---|
| Xero | Multi-currency books and a big app ecosystem | Multi-currency from the Standard plan, a large app marketplace, and the standard choice for UK, Australian and NZ accountants | The entry plan limits invoices and bills |
| QuickBooks | The package most US accountants already know | Familiar to US accountants, with sales tax tools and a payroll add-on | Cost rises with users and features |
| FreshBooks | Simple invoicing and time tracking as a freelancer or small service firm | Invoices, time tracking and expenses in one tool | Fewer accounting features, and plans are priced by billable clients |
| Zoho Books | Accounting inside the Zoho suite | Connects to Zoho CRM and Projects, with recurring invoices | Fewer accountants know it |
| FreeAgent | UK tax and Making Tax Digital built in | Estimates your tax as you go | Built around UK rules, so not for other countries |
| Wave | A free place to start | Free invoicing and basic accounting | Fewer features, and strongest in the US and Canada |
Tax rules differ by country. Pick software built for yours, with the right VAT or sales tax handling.
Software they already know saves them time and you fees. Most accountants will tell you their preference.
If so, check multi-currency support and how exchange differences are recorded, and which plan includes it.
Bank feeds, your card provider and payment tools should sync automatically so nothing is typed twice.
Accounting software records every sale, cost and payment in one place and turns them into the reports you need: profit and loss, balance sheet, cash flow and tax summaries. Most modern tools are cloud-based, so you, your bookkeeper and your accountant can work in the same file at the same time.
It is worth separating two jobs. Bookkeeping is recording and categorising transactions day to day. Accounting is using those records to prepare accounts and tax returns. Good software makes the first job quick, so the second is cheap and accurate.
Plans are usually priced by features, and sometimes by the number of invoices, bills, users or clients. Payroll, payment processing and extra users are often add-ons. Compare what you need today and what you will need in a year, because a cheap entry plan with a low invoice limit can become the expensive option as you grow.
Moving between tools is possible, since most export customers, suppliers, invoices and a trial balance. The quietest time is the start of a financial year. Run the old and new system side by side for a month, compare the reports, and keep a full export of the old data.
Usually yes. It keeps your records current through the year, so your accountant works from clean data instead of a year-end pile of receipts, and your bills tend to come down.
Both do the core job well. QuickBooks is more common among US accountants, and Xero is more common in the UK, Australia and New Zealand. Choose the one your accountant supports.
Yes. Most tools export your data and the main vendors offer migration help. The least disruptive time to move is at the start of a financial year.
Wave offers a free plan with limits. Free plans often leave out multi-currency, payroll or extra users, so check what is included before you rely on one.
Most can. Card and expense platforms such as Wallester sync transactions to tools like Xero and QuickBooks, so receipts and spend land in your books without retyping.
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