Managing your business finances is essential, but it doesn’t have to be overwhelming. At SW&P, we support businesses across the UK in streamlining their accounting systems and staying compliant with HMRC regulations, including Making Tax Digital (MTD).
To help you stay on top of your expenses, here’s our list of the top 10 accounting tools available in the UK.
1. Xero
Best for: Small to medium-sized businesses
Xero is a top choice for UK SMEs thanks to its user-friendly design and powerful features. It allows for automated bank feeds, expense tracking, VAT returns, and MTD submissions directly to HMRC.
Why we like it: Trusted across the UK, real-time reporting, and seamless integration with over 800 apps.
2. QuickBooks Online
Best for: Businesses of all sizes
QuickBooks Online offers automatic expense tracking, bank reconciliation, and VAT return filing. It’s an ideal all-rounder for sole traders up to large teams.
Why we like it: Comprehensive, scalable, and compliant with HMRC requirements.
3. FreeAgent
Best for: Freelancers and small business owners
FreeAgent is tailored to freelancers and micro-businesses in the UK. It automates Self Assessment, VAT, and Corporation Tax calculations.
Why we like it: Designed specifically for UK tax laws and includes direct HMRC integration.
4. Sage
Best for: SMEs that need detailed financial reporting
Sage has been a household name in UK accounting for decades. It offers strong tools for cash flow forecasting, VAT submissions, and multi-user access.
Why we like it: Strong legacy, great support, and trusted by UK professionals.
Specialists in Xero, QuickBooks, Sage & FreeAgent
While we’ve worked with nearly all the accounting tools listed in this blog, we particularly recommend Xero, QuickBooks, FreeAgent, and Sage for their robust features, HMRC compliance, and suitability for a wide range of UK businesses.
At SW&P Accountancy, we don’t just suggest these platforms – we’re specialists in them. Whether you’re a sole trader, a growing SME, or managing a larger team, we offer expert training, tailored setup support, and ongoing guidance to help you get the most out of your chosen software.
5. Zoho Books
Best for: Start-ups and tech-savvy users
Zoho Books is a highly customisable and affordable solution. It supports UK VAT schemes, invoicing, and direct filing to HMRC (with proper setup).
Why we like it: Smart automation features and exceptional value.
6. Wave
Best for: Freelancers and very small businesses
Wave is a free, easy-to-use accounting tool ideal for sole traders not yet subject to MTD. While it lacks UK tax integration, it handles invoicing and expenses well.
Why we like it: 100% free and simple – just not suitable for VAT-registered UK businesses.
7. KashFlow
Best for: UK-based small businesses
KashFlow simplifies VAT returns, payroll, and expense tracking. It’s ideal for businesses that want a UK-centric tool without the clutter.
Why we like it: HMRC recognised and UK-first design.
8. Expensify
Best for: Businesses with travelling employees
Expensify excels at simplifying expense claims and employee reimbursements. While it doesn’t offer full UK accounting, it integrates smoothly with Xero and QuickBooks.
Why we like it: Streamlines team expenses and integrates easily with your main accounting system.
9. FreshBooks
Best for: Service-based businesses
FreshBooks offers an excellent user experience for consultants and service providers. However, UK VAT and MTD compliance may require third-party integration.
Why we like it: Great design and features for project-based businesses, with some limitations on tax compliance.
10. Pleo
Best for: Teams and smart company spending
Pleo issues smart company cards for employees and automates expense management. It’s not a full accounting suite but works well with Xero, QuickBooks, and others.
Why we like it: Eliminates manual expense claims and enhances team accountability.
What About Making Tax Digital (MTD)?
MTD is mandatory for most VAT-registered UK businesses. If you’re unsure whether your current system is compliant, we’re here to help.
MTD Compliant Tools:
- Xero
- QuickBooks Online
- FreeAgent
- Sage
- KashFlow
- Zoho Books (with proper setup)
Not MTD Ready (Without Add-ons):
- Wave
- FreshBooks
- Expensify (complementary tool)
- Pleo (complementary tool)
Need Help Choosing or Setting Up?
At SW&P Accountancy, we guide clients in choosing the right accounting software based on their industry, structure, and tax obligations. We also help you get fully set up with MTD compliance and tailored financial support. Contact us today to find the perfect tool for your business.
