As UK businesses continue to embrace digital transformation, cloud accounting software has become essential for efficient financial management and compliance. The right solution can save time, reduce errors, and provide valuable insights into your business’s financial health. Here’s an in-depth look at the 10 best cloud accounting software and apps for UK businesses in 2025, detailing features, pricing, and suitability.
Whether you’re a small business or a large enterprise, there is a suitable accounting solution here that will fit the bill and fulfill your requirements.
| Software | Key Features | Advantages | Pricing (Starting) | Best For |
|---|---|---|---|---|
| Xero | Invoicing, bank reconciliation, expense tracking, payroll integration, project management, multi-currency support | Extensive integrations, user-friendly interface, real-time financial data, unlimited users | £14/month | SMEs looking for integrations and scalability |
| QuickBooks Online | VAT automation, income/expense tracking, inventory management, payroll integration, multi-currency support | Intuitive dashboard, excellent support, mobile app, comprehensive VAT management | £12/month | Businesses needing advanced VAT and MTD compliance |
| Sage Accounting | Automated bank feeds, cash flow forecasting, invoice creation, expense management, VAT compliance, multi-user access | Established reputation, robust compliance tools, scalable, strong reporting | £12/month | Businesses familiar with Sage desktop products |
| Zoho Books | Multi-currency support, project tracking, automated workflows, invoicing, expense tracking, bank reconciliation | Affordable pricing, seamless Zoho integration, user-friendly, strong support | £8/month | Start-ups and micro-businesses seeking affordability |
| FreeAgent | Invoice reminders, bank feeds, tax support, time tracking, expense management, cash flow forecasting | UK tax-specific, simple interface, personalised dashboards, mobile app | £14.50/month | Freelancers and contractors managing accounts |
| KashFlow | VAT filing, payroll integration, invoicing, expense tracking, bank reconciliation, multi-user access | UK-focused design, customisable workflows, competitive pricing, easy setup | £9/month | Sole traders and SMEs requiring straightforward tools |
| FreshBooks | Time tracking, project management, expense management, customised invoicing, financial reporting, recurring billing | Ideal for service-based businesses, global currency support, mobile-friendly | £11/month | Service-based businesses needing time tracking |
| Wave Accounting | Invoicing, expense tracking, bank connections, reporting tools, optional payroll services | Free for core features, simple setup, secure platform, scalable add-ons | Free | Sole traders and small businesses with tight budgets |
| Clear Books | VAT compliance, cash flow tracking, invoicing, bank reconciliation, multi-user access | UK-specific focus, simplified navigation, affordable pricing, strong support | £12/month | SMEs needing MTD compliance and simplicity |
| Reckon One | Modular design, payroll, project tracking, bank reconciliation, real-time reporting | Flexible modular pricing, low entry cost, mobile app, UK compliance | £3/month | Budget-conscious businesses preferring modular flexibility |
1. Xero
Key features:
- Invoicing: Create and customise professional invoices, set up recurring invoices, and receive payments online.
- Bank reconciliation: Automatically import and categorise bank transactions for real-time reconciliation.
- Expense tracking: Monitor and manage expenses with receipt capture and mobile app integration.
- Payroll integration: Seamlessly integrate with payroll services to manage employee payments and deductions.
- Project management: Track project costs, time, and profitability within the platform.
- Multi-currency support: Handle transactions in multiple currencies, ideal for businesses with international dealings.
Advantages:
- User-friendly interface: Intuitive design suitable for users with varying accounting knowledge.
- Extensive integrations: Connects with over 1,000 third-party apps, enhancing functionality.
- Real-time financial data: Provides up-to-date financial information for informed decision-making.
- Unlimited users: Allows multiple users with role-based access, facilitating collaboration.
Pricing:
- Starter plan: £14/month – suitable for sole traders and new businesses.
- Standard plan: £28/month – offers additional features for growing businesses.
- Premium plan: £36/month – includes advanced functionalities for established businesses.
Best for: Small to medium-sized enterprises (SMEs) seeking a scalable solution with robust features and extensive integration capabilities.
See our Xero pricing review
2. QuickBooks Online
Key features:
- VAT automation: Automatically calculates VAT and facilitates Making Tax Digital (MTD) submissions to HMRC.
- Real-time income and expense tracking: Monitor financial transactions with real-time updates.
- Inventory management: Track stock levels, manage orders, and streamline product management.
- Invoicing: Create customised invoices and set up automated payment reminders.
- Payroll services: Optional integration with payroll to manage employee salaries and deductions.
- Multi-currency support: Manage transactions in various currencies, beneficial for international operations.
Advantages:
- Intuitive dashboard: User-friendly interface with a comprehensive overview of financial health.
- Excellent customer support: Access to support via phone and chat for prompt assistance.
- Mobile app: Fully featured mobile application for managing finances on the go.
- Extensive integrations: Connects with numerous third-party applications to enhance business operations.
Pricing:
- Simple Start: £12/month – ideal for sole traders and small businesses.
- Essentials: £20/month – includes additional features like bill management and multi-currency support.
- Plus: £30/month – offers advanced functionalities such as inventory tracking and project profitability.
Best for: Businesses requiring comprehensive VAT management and MTD compliance, with the flexibility to scale as they grow.
See our QuickBooks pricing review.
3. Sage Accounting
Key features:
- Automated bank feeds: Link bank accounts for automatic transaction imports and reconciliation.
- Cash flow forecasting: Predict future cash flow to make informed financial decisions.
- Invoice creation: Generate and send professional invoices with ease.
- Expense management: Track and categorise expenses to monitor spending.
- VAT compliance: Prepare and submit VAT returns directly to HMRC.
- Multi-user access: Allow multiple users with controlled access levels.
Advantages:
- Established reputation: Trusted by businesses for reliability and compliance with UK tax regulations.
- Comprehensive reporting: Access a wide range of financial reports for deeper insights.
- Scalability: Suitable for businesses of various sizes, with features that grow with your business.
- Integration capabilities: Connects with other Sage products and third-party applications.
Pricing:
- Accounting Start: £12/month – suitable for sole traders and micro-businesses.
- Accounting Standard: £25/month – offers additional features for growing businesses.
Best for: Businesses familiar with Sage desktop products seeking a reliable cloud-based solution with strong compliance features.
See our Sage Accounting pricing review.
4. Zoho Books
Key features:
- Multi-currency support: Manage transactions in multiple currencies with real-time exchange rates.
- Project tracking: Monitor project expenses, time, and profitability.
- Automated workflows: Set up triggers and actions to automate routine tasks.
- Invoicing: Create and send customised invoices with payment gateway integration.
- Expense tracking: Record and categorise expenses, and upload receipts.
- Bank reconciliation: Automatically fetch bank transactions for reconciliation.
Advantages:
- Affordable pricing: Cost-effective solution with a comprehensive set of features.
- Seamless integration: Integrates well with other Zoho applications, providing a unified business solution.
- User-friendly interface: Easy to navigate, reducing the learning curve for new users.
- Strong customer support: Access to support resources and assistance when needed.
Pricing:
- Free plan: £0/month – for businesses with turnover less than £35,000.
- Basic plan: £10/month – includes additional features for small businesses.
- Standard plan: £20/month – offers more advanced functionalities.
- Professional plan: £30/month – comprehensive features for larger businesses.
Best for: Start-ups and small businesses seeking an affordable, feature-rich accounting solution with the flexibility to integrate with other business tools.
See our Zoho Books pricing review.
5. FreeAgent
Key features:
- Invoice reminders: Automatically send reminders for overdue invoices to clients.
- Automatic bank feeds: Import bank transactions daily for up-to-date financial data.
- Comprehensive tax support: Calculate and file VAT, Self Assessment, and Corporation Tax.
- Time tracking: Record billable hours and link them to projects and invoices.
- Expense management: Log and categorise expenses to simplify tax returns.
- Multi-project management: Manage multiple projects, assign costs, and track profitability.
- Mobile app: Perform key tasks such as invoicing and expense tracking while on the go.
- Cash flow forecasting: Monitor real-time cash flow and plan for future financial needs.
Advantages:
- Tailored for UK businesses: Specifically designed to meet UK tax requirements, including Making Tax Digital (MTD) compliance.
- Ease of use: The simple interface is ideal for freelancers and small business owners without accounting expertise.
- Personalised dashboards: Provides an at-a-glance view of key financial metrics such as profit, tax deadlines, and cash flow.
- Comprehensive support: Offers customer service, webinars, and guides for UK users.
Pricing:
- Sole traders: £14.50/month – designed for independent business owners.
- Partnerships and LLPs: £29/month – suitable for small firms.
- Limited companies: £29/month – tailored for incorporated businesses with more complex needs.
Best for: Freelancers, contractors, and small businesses needing comprehensive UK tax support in an easy-to-use platform.
See our FreeAgent pricing review.
6. KashFlow
Key features:
- Automatic VAT filing: Simplifies VAT calculations and submissions to HMRC.
- Payroll integration: Offers integration with KashFlow Payroll for managing employee salaries.
- Customisable invoicing: Design invoices with personalised branding and automated reminders.
- Expense tracking: Record and categorise business expenses for tax efficiency.
- Bank reconciliation: Import and match transactions with ease to streamline accounting.
- Multi-user access: Enable different access levels for team members, bookkeepers, and accountants.
Advantages:
- UK-focused design: Specifically created to meet the needs of UK businesses, including MTD compliance.
- Simple setup: Minimal learning curve for users new to cloud accounting.
- Customisation: Adjust workflows, invoicing, and reports to suit your business needs.
- Affordability: Offers competitive pricing compared to similar platforms.
Pricing:
- Starter plan: £9/month – ideal for sole traders with basic needs.
- Business plan: £18/month – includes more features for growing businesses.
- Payroll add-on: Starts at £6/month for integrated payroll functionality.
Best for: UK sole traders and small businesses looking for an easy-to-use, affordable accounting solution with payroll integration.
See our Kashflow pricing review.
7. FreshBooks
Key features:
- Time tracking: Accurately record billable hours and link them to projects and invoices.
- Expense management: Track expenses and upload receipts via the mobile app.
- Customised invoicing: Create professional invoices with custom fields, branding, and payment terms.
- Financial reporting: Generate profit and loss statements, tax summaries, and expense reports.
- Recurring billing: Automate recurring invoices for ongoing client relationships.
- Payment processing: Accept credit card and bank transfer payments directly through the platform.
Advantages:
- Tailored for service-based businesses: Ideal for professionals needing time tracking and expense management.
- Global currency support: Handle transactions in multiple currencies for international clients.
- Mobile-friendly: Full-featured mobile app enables on-the-go financial management.
- Simplifies tax preparation: Offers tools for organising expenses and revenue to streamline tax filing.
Pricing:
- Lite plan: £11/month – for businesses with basic needs.
- Plus plan: £19/month – suitable for small teams managing multiple projects.
- Premium plan: £30/month – includes advanced reporting and unlimited users.
Best for: Service-based businesses and freelancers needing powerful tools for invoicing and time management.
See our FreshBooks pricing review.
8. Wave Accounting
Key features:
- Free invoicing: Create unlimited invoices with custom branding and automated payment reminders.
- Expense tracking: Categorise expenses and monitor spending in real-time.
- Bank connections: Import transactions directly from your bank for effortless reconciliation.
- Payroll services: Optional payroll integration for employee management.
- Reporting tools: Generate basic financial reports such as profit and loss statements.
Advantages:
- Completely free core features: No-cost accounting for small businesses and freelancers.
- Ease of use: Intuitive interface suitable for users without accounting knowledge.
- Scalable add-ons: Optional paid services like payroll and expert advice.
- Secure platform: Provides bank-level encryption to protect sensitive data.
Pricing:
- Accounting software: Free for all core features.
- Payroll add-on: £20/month base fee plus £3 per employee.
- Advisory services: Optional, priced per consultation.
Best for: Sole traders and small businesses with minimal accounting needs or tight budgets.
See our Wave Accounting pricing review.
9. Clear Books
Key features:
- VAT compliance: Automates VAT calculations and MTD submissions.
- Cash flow tracking: Visualise incoming and outgoing funds to stay on top of finances.
- Customised invoicing: Design professional invoices with a personal touch.
- Bank reconciliation: Quickly match bank transactions for accurate financial records.
- Multi-user access: Share access with team members or accountants.
Advantages:
- UK-specific focus: Built with UK tax regulations in mind, including MTD compliance.
- Simplified navigation: User-friendly interface for straightforward bookkeeping.
- Affordable pricing: Competitive rates with essential features for small businesses.
- Strong support: Offers guidance and help tailored to UK users.
Pricing:
- Small plan: £12/month – suitable for sole traders and micro-businesses.
- Large plan: £22/month – offers advanced reporting and multi-user access.
Best for: Small businesses needing UK-focused accounting software with straightforward usability.
See our Clear Books pricing review.
10. Reckon One
Key features:
- Modular design: Add or remove features based on your business needs.
- Customisable payroll: Handle employee salaries and compliance requirements efficiently.
- Project tracking: Monitor project costs and profitability.
- Bank reconciliation: Simplify transaction matching for accurate accounts.
- Real-time reporting: Generate financial insights tailored to your business.
Advantages:
- Flexibility: Pay only for what you need with its modular pricing structure.
- Cost-effective: Affordable base price with optional add-ons for enhanced functionality.
- Mobile app: Manage your business finances anytime, anywhere.
- UK-compliant: Designed to meet HMRC standards, including MTD.
Pricing:
- Base plan: £3/month – includes essential features.
- Optional modules: Add payroll, projects, or advanced reporting for £2-£5/month each.
Best for: Budget-conscious businesses that value modular flexibility and low entry costs.
See our Reckon One pricing review.
Conclusion
Cloud accounting software offers UK businesses a wide range of options, each tailored to specific needs. From affordable solutions for freelancers to comprehensive platforms for growing enterprises, the key is identifying the features that align with your business goals. By choosing the right software, you can streamline financial management, ensure compliance, and focus on growth.
FAQ
Accounting software is a digital tool that helps businesses manage their financial transactions, track expenses, generate invoices, and ensure tax compliance. It is essential for UK businesses as it simplifies financial management, saves time, reduces errors, and supports Making Tax Digital (MTD) requirements set by HMRC.
Accounting software designed for UK businesses often includes features to calculate VAT automatically and submit returns directly to HMRC, ensuring full compliance with MTD regulations. These tools also help track VAT liabilities in real time.
Yes, many accounting software options cater specifically to freelancers and sole traders. These tools often include simplified features like invoicing, expense tracking, and self-assessment support, making them ideal for individuals managing their accounts independently.
Most modern accounting software operates in the cloud, allowing users to access their data from any device with an internet connection. However, some providers offer desktop versions or hybrid models for businesses that prefer offline access.
Cloud-based accounting software uses advanced security measures, such as encryption and two-factor authentication, to protect sensitive financial data. Providers often host their platforms on secure servers with regular backups to minimise risks.
Many accounting software solutions integrate with a wide range of business tools, such as CRM systems, payroll software, and e-commerce platforms. This allows businesses to streamline operations and ensure data consistency across multiple systems.
Yes, several accounting software solutions offer multi-currency support, which is particularly useful for businesses with international clients or suppliers. This feature automatically converts and tracks transactions in different currencies.
Most accounting software providers offer resources like tutorials, webinars, and detailed help centres to assist users. Some also provide customer support via chat, email, or phone to help resolve specific issues.
Reputable accounting software providers regularly update their platforms to improve functionality, introduce new features, and ensure compliance with changing regulations like MTD. These updates are typically automatic for cloud-based solutions.
UK businesses should evaluate accounting software based on ease of use, MTD compliance, scalability, integration options, and customer support. It’s also important to consider the specific needs of the business, such as invoicing, payroll, or inventory management.