Guide
Making Tax Digital: what UK businesses must do
Who is in scope, which software qualifies and the deadlines HMRC expects you to hit.
Read guideCompare business accounting software
Find MTD-compatible accounting software that matches how your business invoices, banks and reports — without paying for modules you never open.
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How accounting software work
Accounting software records every sale, purchase and bank transaction in one ledger, then turns that ledger into VAT returns, year-end accounts and live cash-flow reporting.
Most UK packages now connect directly to your business bank feed, so transactions arrive automatically and only need categorising. That is where the time saving comes from.
Since Making Tax Digital, VAT-registered businesses must keep digital records and file through compatible software, so the choice is no longer optional for most firms.
What affects the cost of accounting software
- Number of users who need their own login
- Whether payroll is bundled or charged per employee
- Multi-currency and project tracking add-ons
- Transaction volume on entry-level plans
- Onboarding, data migration and training fees
Why compare accounting software with us
MTD compatible
File VAT directly to HMRC without spreadsheets or bridging tools.
Live bank feeds
Transactions import automatically from your business account each day.
Accountant access
Give your accountant a free login instead of emailing files back and forth.
Popular accounting software compared
Indicative list pricing for UK plans. Promotional discounts are common for the first few months.
| Provider | Entry plan | Standard plan | Best for |
|---|---|---|---|
| Xero | £16/mo | £33/mo | Bank reconciliation and app ecosystem |
| QuickBooks | £16/mo | £33/mo | Self Assessment and sole traders |
| Sage Business Cloud | £15/mo | £30/mo | Established SMEs and stock |
| FreeAgent | £19/mo | £29/mo | Contractors and freelancers |
| Zoho Books | £10/mo | £24/mo | Budget-conscious growing teams |
Typical annual cost by business size
Including the add-ons most businesses end up needing in their first year.
| Business size | Software | Payroll add-on | Typical total |
|---|---|---|---|
| Sole trader | £120 - £220 | n/a | £120 - £220 |
| 2 - 9 staff | £300 - £420 | £90 - £220 | £390 - £640 |
| 10 - 49 staff | £420 - £900 | £240 - £700 | £660 - £1,600 |
| 50+ staff | £1,200+ | £800+ | £2,000+ |
Expert advice
Our finance team reviews UK providers, pricing tiers and service levels every quarter.
“Most businesses overpay because they buy the tier with the feature they might need next year. Buy for today and upgrade when the need is real.”
accounting software: pros and cons
Pros
- Automates VAT and reduces manual data entry
- Real-time view of cash position and debtors
- Cheaper accountancy fees because records are clean
- Scales as headcount and turnover grow
Cons
- Monthly subscription with annual price rises
- Per-user pricing gets expensive for larger teams
- Migration mid-year takes planning
How to choose accounting software
The cheapest headline price is rarely the cheapest total cost. Work through these points before you commit.
- 1
Count your real users
Per-user pricing is the biggest driver of cost creep. Decide who needs full access versus read-only.
- 2
Check payroll pricing
Payroll is often billed per employee per month on top of the core subscription.
- 3
Ask your accountant
Practices work faster in software they know, which can lower your accountancy fee.
- 4
Test the bank feed
Confirm your business bank connects natively rather than via manual statement uploads.
Compare accounting software
See what's available for your business today. It takes just minutes.
How to compare accounting software
Comparing takes a few minutes and there is no obligation to switch.
1. Tell us about your business
Turnover, structure, headcount and how many transactions you process each month.
2. See matched providers
We shortlist providers that genuinely support businesses of your size and sector.
3. Compare real costs
Monthly fees, per-user charges, onboarding costs and what is bundled versus billed extra.
4. Get set up
Your chosen provider handles onboarding, data migration and HMRC registrations where needed.
Things to watch out for
Introductory discounts often expire after 3 to 6 months and renew at full list price.
Exporting historic data to a rival platform is rarely a one-click job — check the export format before you commit.
Cheap plans frequently cap the number of invoices or bank transactions per month.
Our accounting software service
We compare accounting software from established UK providers and independent practices, so you can weigh price against the level of support you actually get.
There is no fee to compare, and we will tell you plainly when your existing arrangement is already competitive.
Getting started
1
Gather your numbers
Latest accounts, current provider costs and your accounting year end.
2
Check the transfer
Confirm how records, payroll history and HMRC authorisations move across.
3
Set the go-live date
Most businesses switch at a quarter or year end to keep reporting clean.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad range of UK providers so you can find the option that actually fits how your business operates.
Exclusive offers
We work hard to bring you exclusive deals, switching incentives and cashback where they're available.
Simple and fast
It takes just a few minutes to compare with us — and the deal you find could be well below what you pay today.
Types of accounting software
Different setups suit different stages of growth.
Sole trader packages
Simple income and expense tracking with Self Assessment support built in.
Small business plans
Invoicing, VAT, bank reconciliation and basic reporting for growing firms.
Full accounting suites
Multi-currency, stock, projects and departmental reporting for larger operations.
Practice-managed
Software supplied and run by your accountant as part of a monthly fee.
Providers we compare
Logos are shown for identification. We are not affiliated with every provider listed and do not compare the whole market.
Xero
QuickBooks
Sage
FreeAgent
Zoho Books
Crunch
ANNA Money
CoconutComparing with us is a no-brainer
“We moved off spreadsheets and cut two days a month out of our finance admin.”
Priya, agency owner, Manchester
Business banking guides
Guide
Cutting the cost of your accounting stack
Where subscription tiers, per-user fees and add-on modules quietly inflate your bill.
Read guide
Guide
In-house vs outsourced finance
When a bookkeeper, an accountant or a fractional finance director makes more sense.
Read guideaccounting software FAQs
Do I legally need accounting software?
If you are VAT registered you must keep digital records and file through MTD-compatible software. Below the threshold it is optional but strongly recommended.
Can I switch software mid-year?
Yes. Most providers support migration, though switching at your year end or a VAT quarter keeps reporting cleaner.
Is free accounting software any good?
Free tiers suit very small sole traders, but usually limit invoices, users or VAT filing.
Written by the Grow Your Business editorial team · Updated 26 July 2026