5 Best Self Employed Accounting Software in UK

As we approach the upcoming new tax year in April 2024, now is the ideal moment to set up accounting software, ensuring you start the new year’s records at the right point and avoiding the hassle of transferring records midway through the year. Beyond simply tracking finances, self-employed accounting software can help you manage your accounts on the go, create invoices, keep track of your cashflow, and easily handle your expenses – all crucial business needs, particularly during our current economic climate.

Our expert researchers determined that the best accounting software for self-employed individuals is QuickBooks, thanks to its intuitive interface and simple templates to help you process common tasks. They are also currently offering 90% off for 1 year, giving you a great value way to try the software. But with so many options out there, it can be hard to know how they stack up against each other, and which is the right choice for your business. Read on for our reviews of the best self-employed accounting software to help you spend less time keeping track of your bills, and more time actually running your business.

What is accounting software?

Accounting software is a computer program or application designed to manage and streamline financial processes within a business. It is used by companies of all sizes to record, process, and track financial transactions, generate financial statements, and perform other accounting-related tasks.

Understanding accounting software

According to Intuit, most business owners save around 8 hours a month on their accounts – even if you use free accounting software to get started. Accounting software automates many manual and time-consuming tasks involved in financial management, such as recording sales and purchases, managing accounts payable and receivable, payroll processing, inventory management, budgeting, and generating financial reports.

Definition of accounting software

Businesses that use accounting systems have five times more customers than businesses that don’t, according to GoRemotely. It helps business owners maintain accurate and up-to-date financial records, improve efficiency, reduce errors, and obtain valuable insights into the financial health of their businesses.

Key features of accounting software

“The automation features of accounting software help businesses save time and reduce errors, allowing them to focus on growing their operations.” – Financial Expert, Jane Crawford

Accounting software typically includes the following key features:

  1. Income and expense tracking: Accounting software helps businesses keep track of their revenue and expenses by recording and categorizing financial transactions.
  2. Invoicing: It allows businesses to create professional invoices, send them to clients, and track payment statuses.
  3. Bank account integration: Accounting software can be linked to business bank accounts, making it easier to reconcile transactions and stay up to date with the financial position.
  4. Financial reporting: It generates various financial reports, such as profit and loss statements, balance sheets, and cash flow statements, providing businesses with insights into their performance.
  5. Tax preparation: Accounting software simplifies the tax preparation process by organizing financial data and generating tax reports.
  6. Budgeting and forecasting: It helps businesses create budgets and forecasts, enabling better financial planning and decision-making.

By leveraging the power of accounting software, businesses can streamline their financial management processes, save time, reduce errors, and gain better control over their financials.

Best self-employed accounting software: our top picks

When it comes to managing your finances as a self-employed individual, having the right accounting software is crucial. We’ve researched and compiled a list of the best accounting software options specifically designed for self-employed individuals like yourself. These top-rated platforms offer a range of features and benefits to help streamline your financial management process.

1. QuickBooks – Best for Doing Your Tax Return

QuickBooks is our top pick for self-employed individuals who need to efficiently handle their tax return. With its intuitive interface and tax planning support, QuickBooks simplifies tax-related tasks and ensures accuracy. Stay on top of your financial obligations and focus on growing your business with this powerful accounting software.

2. FreshBooks – Best for Impressing Your Clients

If impressing your clients with professional invoicing and advanced project management tools is a priority, FreshBooks is the ideal choice for you. With FreshBooks, you can create stunning, customized invoices, track project progress, and ensure timely payments. Elevate your business image and enhance client satisfaction with this feature-rich accounting software.

3. Sage Business Cloud Accounting – Best for Customer Support

If you prioritize exceptional customer support, Sage Business Cloud Accounting is the perfect fit for your self-employed business. With Sage’s dedicated customer support team, you can address any accounting-related queries or issues promptly. Benefit from their expertise and guidance as you navigate the world of self-employed finances.

4. Xero – Best for a Clean, User-Friendly Interface

Xero stands out for its clean and user-friendly interface, making it exceptionally easy to use even for those new to accounting software. This platform offers a range of essential accounting features while maintaining a simple and intuitive user experience. Stay organized, simplify your financial tasks, and gain insights into your business’s performance with Xero.

5. Zoho Books – Best for Small Businesses

Zoho Books is an excellent choice for self-employed individuals running small businesses. It offers a comprehensive platform that includes not only accounting features but also integrated client portals. With Zoho Books, you can efficiently manage your finances while providing a professional and seamless experience to your clients.

These top-rated accounting software options for self-employed individuals provide the necessary tools to streamline your financial management process, save time, and reduce errors. Consider factors such as your specific business requirements, budget, and preferred features to choose the best fit for your self-employed venture.

Top Self-Employed Accounting Software

How Does Accounting Software Work?

Accounting software automates financial processes and calculations to efficiently manage a business’s finances. The software incorporates features such as income and expense tracking, invoicing, bank account integration, financial reporting, tax preparation, and budgeting. Users input financial data into the software, which then performs calculations, generates reports, and organizes the data for easy analysis.

With accounting software, businesses can automate tasks like sending invoices, reconciling bank accounts, and generating financial statements. This streamlines the financial management process, saving time and reducing the risk of errors.

“Accounting software simplifies financial management for businesses, allowing them to focus more on running their operations.”

For example, when it comes to income and expense tracking, accounting software records transactions, categorizes them, and updates account balances automatically. This eliminates the need for manual data entry and reduces the chances of errors.

Invoicing is another essential feature of accounting software. It enables businesses to create and send professional-looking invoices to clients, track payment status, and send payment reminders. By automating this process, businesses can improve their cash flow and maintain better relationships with their clients.

Bank account integration is another crucial aspect of accounting software. By linking the software to their bank accounts, businesses can automatically import transactions and reconcile them with their records. This saves time and ensures that financial data is accurate and up-to-date.

Financial reporting is a vital component of accounting software as well. It allows businesses to generate various reports, such as profit and loss statements, balance sheets, and cash flow statements. These reports provide valuable insights into the financial health of the business and aid in making informed decisions.

The automation provided by accounting software streamlines the financial management process, saves time, reduces errors, and enables businesses to focus more on running their operations.

functioning of accounting software

Key Features of Accounting Software Benefits
Income and expense tracking Saves time on manual data entry
  • Improves cash flow
  • Enhances client relationships
Bank account integration Accurate and up-to-date financial data
Financial reporting
  • Provides insights into business performance
  • Supports informed decision-making
Tax preparation Simplifies tax filing processes
Budgeting Helps in managing finances and tracking expenses

What Types of Businesses is Accounting Software Suitable for?

Accounting software is a valuable tool that can benefit a wide range of businesses, including sole traders, freelancers, small businesses, and larger companies. It is a versatile solution that can be tailored to meet the specific needs and requirements of different business types and sizes.

For sole traders and freelancers, accounting software provides essential features to streamline their financial management. It enables them to effectively track their income and expenses, create professional invoices, and efficiently manage their cash flow. By automating these tasks, it saves valuable time and ensures accurate record-keeping, helping them maintain a healthy financial position.

Small businesses can greatly benefit from accounting software as it simplifies various financial processes. It offers features such as payroll processing, inventory management, and financial reporting, which can significantly improve efficiency and productivity. By automating these tasks, small businesses can allocate more time and resources towards driving growth and making informed financial decisions.

For larger companies, accounting software is a crucial tool for managing financial processes across multiple accounts, departments, and locations. It provides a centralized platform for consolidating financial data, streamlining workflows, and generating accurate financial reports. With the ability to integrate with other business systems, accounting software ensures seamless data flow and enhances overall financial visibility and control.

Regardless of the size or type of business, accounting software plays a pivotal role in maintaining accurate financial records and facilitating informed decision-making. It empowers businesses to adapt to evolving financial requirements, comply with tax regulations, and gain valuable insights into their financial health.

Benefits of Accounting Software for Different Business Types:

Sole traders and freelancers:

    • Efficiently track income and expenses.
    • Create professional invoices.
    • Manage cash flow effectively.

Small businesses:

    • Automate payroll processing.
    • Simplify inventory management.
    • Generate accurate financial reports.

Larger companies:

    • Streamline financial processes.
    • Manage multiple accounts and departments.
    • Enhance financial visibility and control.

accounting software for businesses

Accounting software is a game-changer for businesses of all sizes. It provides the necessary tools and functionality to streamline financial management, save time, reduce errors, and enable better decision-making. By implementing the right accounting software for their specific needs, businesses can focus more on growth and success while ensuring their financial records are in order.


In conclusion, choosing the right accounting software is essential for self-employed individuals to effectively manage their finances and streamline their business operations. Our top picks for self-employed accounting software include QuickBooks, Freshbooks, Sage Business Cloud Accounting, Xero, and Zoho Books. Each of these platforms offers unique features and benefits tailored specifically for self-employed individuals, such as tax planning support, professional invoicing, excellent customer support, user-friendly interfaces, and comprehensive platforms for small businesses.

By implementing the right accounting software, self-employed individuals can save time, reduce errors, and have a better understanding of their financial health. Ultimately, the choice of accounting software will depend on individual needs, preferences, and budget. It’s important to consider factors such as pricing, features, ease of use, and customer support when selecting the best accounting software for your self-employed business.

Take control of your finances and propel your self-employed business forward with the right accounting software today!


Is QuickBooks worth it for self-employed UK?

Yes, QuickBooks is worth it for self-employed individuals in the UK as it helps organize finances, track expenses, and simplify tax filing. It offers features tailored to self-employed professionals at an affordable price point.

What is better, QuickBooks or Xero?

Both QuickBooks and Xero are excellent accounting software options. QuickBooks is user-friendly, popular, and offers strong customer support, while Xero is known for its robust features, automation capabilities, and integration with third-party apps. The choice between them ultimately depends on your specific business needs and preferences.

Do I still need an accountant if I use QuickBooks?

While using QuickBooks can streamline your financial management tasks, having an accountant can still be beneficial. An accountant can provide valuable insights, advice on tax optimization, and ensure that your financial records are accurate and compliant. They can also offer strategic guidance to help grow your business.

Why choose QuickBooks over Xero?

Choosing QuickBooks over Xero may be preferable if you value user-friendly interfaces, strong customer support, and a wide range of integrations with other business tools. QuickBooks is also widely used and trusted by many businesses, making it a familiar choice for both users and accountants.

Why do accountants prefer Xero?

Accountants often prefer Xero for its robust reporting capabilities, advanced features such as multi-currency support and project tracking, as well as its ease of collaboration with clients. Additionally, Xero’s strong focus on automation and efficiency can help accountants streamline their workflows and better serve their clients.

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