Accounting software is your secret weapon for keeping things smooth, but which one should you trust with your precious data? Check out our top picks to stay ahead.
After hours of research, we’ve crowned QuickBooks the best overall accounting software for small businesses in 2024. It’s super affordable, often has deals, and offers killer features like tax tools and cash flow forecasting, making your money game easier than ever.
But, listen up. In today’s tight economy, the last thing you need is getting trapped in a long-term contract with the wrong software. Migrating data can be a headache. Choose carefully before you commit time and $$$.
For a quick rundown on pricing and features, hit up our free cost comparison tool 🔍. Or, dive into the full breakdown below of the best-performing accounting software, straight from our hands-on testing.
This guide will break down:
- QuickBooks: best for cash flow forecasts
- Xero: best for hospitality
- Clear Books: best for brick-and-mortar shops
- Zoho Books: best for service teams
- FreshBooks: best for businesses with add-ons
1. QuickBooks: best for cash flow forecasting
QuickBooks is the GOAT for two reasons: affordability and features. The cheapest plan? £10 per month, per user. Plus, regular discounts mean you’ll get bang for your buck—like 75% off for a year right now.
On top of the cash-saving, QuickBooks nails small biz needs with live chat support, a dope mobile app for tracking expenses on the go, and it syncs with over 700 apps. But, the real MVP is the cash flow forecasting. It lets you project future sales and expenses—crucial for any small biz trying to stay lean.
What’s not so great? QuickBooks is broad but not deep. For example, it lacks inventory management in its cheaper plans. If you need that feature (like for project management), FreshBooks might be a better fit with its £15/month plan.
QuickBooks Pricing:
| Plan | Cost |
| Self Employed | £10/month (excl. VAT) 75% off for 1 year |
| Simple Start | £14/month (excl. VAT) 75% off for 1 year |
| Essentials | £28/month (excl. VAT) 75% off for 1 year |
| Plus | £38/month (excl. VAT) 75% off for 1 year |
| Advanced | £90/month (excl. VAT) 75% off for 1 year |
For full QuickBooks deets, check out our pricing guide.
Pros:
- VAT-compliant
- App is a breeze to use
- Syncs with over 700 apps
Cons:
- No email/phone support
- Advanced features need paid plans
2. Xero: best for hospitality businesses
Xero crushes it in the hospitality game—restaurants, pubs, bars, take note! 🍻 Xero’s budget creator (available in all plans) is clutch for businesses running on razor-thin margins. Plus, it handles asset management like a pro—keeping track of those fancy fridges or AC units you’re renting. And with POS integrations (Square, EPOS Now), you’re all set for seamless accounting.
Downside? Xero’s support could use a glow-up. No live chat or phone support—only web forms. Plus, if you need project budgeting, it’s locked behind the priciest plan.
Xero Pricing:
| Plan | Cost |
| Starter | £15/month (plus VAT) |
| Standard | £30/month (plus VAT) |
| Premium | £42/month (plus VAT) |
Pros:
- VAT-compliant
- Multi-currency support
- Syncs with top POS systems
Cons:
- Pricey compared to others
- No cash flow tools like QuickBooks
3. Clear Books: best for brick-and-mortar businesses
Clear Books is all about simplicity—easy bookkeeping for stores with loads of transactions. The bank feed feature lets you sync with your bank, saving time on reconciliation. Even on its cheapest plan, you get accounts payable features—great for keeping tabs on vendor bills.
What’s the catch? It’s light on advanced features, and the learning curve might trip you up at first. But once you’re used to it, Clear Books becomes a powerful tool.
Clear Books Pricing:
| Plan | Cost |
| Small | £13.50/month (excl. VAT) |
| Medium | £29/month (excl. VAT) |
| Large | £36/month (excl. VAT) |
Pros:
- VAT-ready
- Easy permissions setup
- Assign different access levels
Cons:
- Lacks advanced features for scaling businesses
- Can be tricky to learn at first
4. Zoho Books: best for professional service teams
For agencies and consulting teams, Zoho Books is 🔥. You can manage multiple projects and track tasks, time, and profitability—even on the lowest-priced plan. It also boasts accounts receivable tools, letting you send up to 5,000 invoices annually.
Weak spots? No bank feeds. Someone’s gotta manually enter those transactions (sorry not sorry). Also, only email support is available.
Zoho Books Pricing:
| Plan | Cost |
| Free | £0/month |
| Standard | £10/month (excl. VAT) |
| Professionl | £20/month (excl. VAT) |
Pros:
- VAT-compliant
- Project tools on the cheap
- Client portal for invoices
Cons:
- Only three users on Standard
- Few third-party integrations
5. FreshBooks: best for businesses selling add-ons
FreshBooks is perfect for service businesses that need inventory tracking (like hair salons selling products). It even warns you when you’re running low on stock—no more embarrassing out-of-stock moments. Plus, FreshBooks integrates effortlessly with Shopify, Squarespace, and BigCommerce.
What’s the downside? No budgeting or cash flow tools, so larger businesses should look at QuickBooks. Also, the Lite plan only lets you have five clients, so growing businesses may need the pricier option.
FreshBooks Pricing:
| Plan | Cost |
| Lite | £15/month (50% off for 3 months) |
| Plus | £25/month (50% off for 3 months) |
Buying Guide: How to choose the right small business accounting software
Here are the key features you should focus on:
- Pricing: Keep your budget in mind. Look for scalability.
- Bookkeeping: Pick software that simplifies transaction tracking.
- Accounts Payable: Make sure it streamlines your payments.
- Accounts Receivable: Look for invoice and payment tracking.
- Financial Reporting: Go for customizable reports for decision-making.
- Integrations: Ensure it syncs with your other systems.
- Mobile: A solid app is essential for accessing info on the go.
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