As a small business owner, you understand that financial management plays a critical role in the overall growth and success of your business. By adopting accurate and efficient accounting practices, you will be in the best position to make decisions backed by solid data, maintain compliance with tax regulations, and ensure optimal cash flow. Fortunately, the availability of accounting software has made it easier for small business owners to handle their finances.

Gone are the days when bookkeeping had to be carried out in a notebook or manually in a spreadsheet before uploading it into your accounting software. Now, there are opportunities to access accounting software that simplifies the process. This is especially crucial since tax regulations have gone digital, requiring all financial reports, including tax returns, to be submitted online. With real-time visibility of expenses and incomes, you'll have the ability to generate up-to-date financial reports, giving you the power to analyse and identify financial trends and address any concerns as they arise.

Some accounting software options offer features such as invoicing, payroll and inventory management, payment processing, tax return preparation and submission, as well as integration capabilities with your customer relationship management (CRM) system or website.

In this article, we will delve into seven accounting software options for small business owners. We will break-down their features, affordability, and compatibility with your existing systems. So, whether you're a solopreneur, a startup, or an established small business owner, the right accounting software can be a game-changer. Let's explore seven accounting software options that are affordable and tailored for small business owners:

Xero

Xero is an accounting software designed for small and medium-sized businesses. It offers a comprehensive set of features to help businesses manage their finances efficiently.

Compatibility:

Xero is compatible with PC, Mac, iOS and Android.

Integrations:

Xero offers third party integrations from Shopify, Hubdoc, Stripe, Hubspot, Mailchimp, Planday, Microspft Outlook and Google Contacts.

Price Plans:

• Starter at £7

• Standard at £14

• Premium at £18

Quickbooks

QuickBooks is an accounting software developed by Intuit. It is designed to help small and medium-sized businesses manage their financial transactions, invoicing, payroll, and more.

Compatibility:

Quickbooks is compatible with PC, Mac, iOS and Android.

Integrations:

Quickbooks allows integration with Amazon Business, Paypal, Square, Etsy, Ebay and Shopify.

Price Plans:

• Self Employed: £10 per month

• Simple Start: £14 per month

• Essentials: £24 per month

• Plus: £34 per month

• Advanced: £70 per month

Zoho Books

Developed by Zoho Corporation, Zoho Books is an online accounting software designed to help small and medium-sized businesses manage their financial transactions and streamline their accounting processes.

Compatibility:

Zoho Books is compatible with Mac OS, Android, Linux and Windows.

Integrations:

Zoho can be integrated with Zendesk, Service Now, Flow, Slack, Jira, Freshdesk, Microsoft Teams, Spiceworks and Bookings.

Price Plans:

Remote Support

• Standard: £8 per month

• Professional: £12 per month

• Enterprise: £19 per month

Unattended Access

• Standard: £8 per month

• Professional: £12 per month

Free Agent

FreeAgent is an online accounting software specifically designed for freelancers, small businesses, and contractors. It offers a range of features to help manage finances, invoicing, expenses, and more.

Compatibility:

Free Agent is compatible with Android, iOS, Mac OD and Windows.

Integrations:

Free Agent can be integrated with a wide range of platforms, including Text, Autoentry, Tyl by NatWest, Stripe, GoCardless, Paypal, Sellwire, Shopify, goodtill, Billsby amongst many more.

Price Plans:

Limited Company

• £14.50 for first six month, then £29 per month after first six months

• £145 for first 12 months, then £290 per year after first 12 months

Partnerships and LLP

• £12 for first 6 months, then £24 after first six months

• £120 for first 12 months, then £240 after first 12 months

Soletrader

• £9.50 for first six months, £19 after first six months

• £95 for first 12 moths, then £190 after first 12 months

Sage

Sage is a provider of business management software, including accounting solutions. Sage offers a range of accounting software products designed to meet the needs of different businesses, from small to large enterprises.

Compatibility:

Sage is compatible with Android, iOS, Mac OD and Windows.

Integrations:

Sage allows integration with Roveel, Helm, Satago, Silicon Manufacturing Suite, Zapier, DocFlite, Cim200 Manufacturing, Shopify and Square.

Price Plans:

Small Businesses

• Sage Accounting: From £14 per month

• Sage Payroll: From £8 per month

Crunch

Crunch Accounting is an online accounting service designed for freelancers, contractors, small businesses, and self-employed individuals. It provides a range of accounting and financial management tools to simplify bookkeeping and tax compliance.

Compatibility:

Crunch is compatible with Android, iOS, Mac OD and Windows.

Integrations:

Crunch can be integrated with BRIXX, Tripcatcher, Snap App, Shopify, Stripe and Open Banking.

Price Plans:

Sole Trader Pro

• £24.50 per month

Limited Company

• £41.50 per month

Limited Company Pro+

• £79.50 per month

Clear Books

Clear Books is an online accounting software designed for small businesses and accountants in the UK. It offers a range of features to help manage financial transactions, invoicing, expenses, and more.

Compatibility:

Clearbooks is compatible with Android, iOS, Mac OD and Windows.

Integrations:

Clearbooks can be integrated with Paypal, GoCardless, Capitalise, Text, Stripe, iPages and Auto Entry.

Price Plans:

Small

• £13.00 per month

Medium

• £14 per month

Large

• £34 per month