The best small business accounting software in the UK is the one that does three things well for your business: keeps digital records HMRC accepts, files your returns through Making Tax Digital (MTD), and costs a sensible amount once the introductory discount ends. For most sole traders, landlords and small limited companies that means paying somewhere between £5 and £40 a month, not more.
Searches for "small business accounting software" are up 20% this quarter. That's no surprise: MTD for Income Tax started on 6 April 2026 for sole traders and landlords with income over £50,000, and the threshold falls to £30,000 in April 2027. Lots of people who used spreadsheets or shoeboxes now need software. This guide explains what to look for, what it really costs and how to choose.
What business accounting software must do in 2026
Whatever you pick, check it can do these. If it can't, it isn't really an option for a UK business any more.
- MTD VAT filing. If you're VAT-registered, you must keep digital records and file your VAT return from MTD-compatible software.
- MTD for Income Tax. If you're a sole trader or landlord over the threshold, the software must send quarterly updates and your final declaration. HMRC's own guidance says to check this before price.
- Bank feeds. Not legally required, but importing transactions automatically saves hours and stops missing entries.
- Invoicing. Professional invoices, with VAT shown correctly, and a way to see who owes you money.
- Reports you understand. At least a profit and loss, a balance sheet and a VAT summary.
- Your accountant can log in. If you use an accountant, invite them rather than emailing spreadsheets.
Check the software is on HMRC's list of compatible software. HMRC has a software finder on GOV.UK where you can filter by what you need to file.
Best accounting software by business type
"Best accounting software" depends on what kind of business you run. Here's what matters most for each.
| Business type | What you need most | Watch out for |
|---|---|---|
| Sole trader | MTD Income Tax, mileage, simple categories | Plans without MTD ITSA |
| Landlord | Per-property records, mortgage interest restriction | Software built only for trading businesses |
| Limited company | VAT, payroll, Corporation Tax, year-end accounts | CT600 and accounts filing sold separately |
| Online seller | Stock, multi-currency, platform payouts | Stock control only on top tiers |
If you're a landlord, see our guide to rental property accounting software. If you're deciding between being a sole trader and a company, read sole trader vs limited company.
Accounting software UK prices compared
These are ongoing monthly prices excluding VAT, checked on providers' UK pricing pages in October 2026. Many providers offer heavy discounts for the first few months, so compare the price you'll pay after the offer ends.
| Software | Entry plan | Typical small company plan |
|---|---|---|
| Xero | £18 (20 invoices, 10 bills a month) | £39 (Grow) |
| FreeAgent | £10 landlord / £19 sole trader | £33 (free with NatWest, RBS, Ulster Bank or Mettle) |
| Sage Accounting | around £18 | higher tiers for stock control |
| QuickBooks | around £16 | higher tiers for multi-currency and stock |
| Zoho Books | Free plan | £12 (Standard) |
| AccLedger | £5 landlord / £7.50 sole trader | £10, everything included |
Prices change often, so always check the provider's own pricing page. If price is your main concern, read our guides to free accounting software and cheap accounting software.
Online accounting software vs desktop
Almost all small business accounting software is now online accounting software. It runs in your web browser, and your data is stored in the cloud. That means:
- Nothing to install or update.
- Your accountant sees the same figures as you, in real time.
- Your records are backed up for you.
- You can work from any computer.
Desktop software that you download and install still exists, but you'd usually need a separate bridging tool for MTD. For a new small business there's rarely a reason to choose it.
Best small business accounting software for Mac
Searches for "best small business accounting software for Mac" have tripled. The good news is that you don't need Mac-specific software. Any browser-based accounting software works on a Mac in Safari, Chrome or Firefox, with nothing to download.
Be careful with older desktop packages. Some were built for Windows only and need workarounds to run on a Mac. If a product's website talks about "downloads" and "installers", check it supports macOS before you buy.
How to choose: a checklist
- List what you must file. VAT? MTD Income Tax? Payroll? Corporation Tax and Companies House accounts?
- Check HMRC compatibility for each one.
- Work out the real price after any introductory discount, including add-ons like payroll or extra users.
- Check the limits. Invoice caps, bill caps, user limits and stock control are the usual upgrade triggers.
- Connect your bank during the free trial and see how well transactions are categorised.
- Run one full month through it: invoices, expenses, bank reconciliation and a VAT or quarterly report.
- Ask your accountant if they can log in, or whether they'll charge extra for an unfamiliar package.
- Check you can export your data if you ever leave.
Small business accounting with AccLedger
AccLedger is online accounting software built for UK small businesses, with one plan per business type and no feature tiers:
- Landlords £5/month: per-property records, the mortgage interest restriction, MTD Income Tax and unlimited properties.
- Sole traders £7.50/month: MTD Income Tax, Self Assessment, mileage, invoicing and bank feeds.
- Limited companies £10/month: MTD VAT, payroll for up to 5 employees, stock control, multi-currency, plus your CT600 and Companies House accounts included.
AccLedger is HMRC-recognised for MTD VAT. For MTD Income Tax, it prepares your quarterly updates from your records, and you review them and submit them to HMRC yourself. It runs in any browser, so it works on Mac and Windows. See pricing, or compare us with Xero, QuickBooks, Sage and FreeAgent.
Start a 30-day free trial — no card needed.
FAQs
What is the best accounting software for a small business in the UK? There's no single best. Pick one that covers your filings (VAT, MTD Income Tax, payroll, Corporation Tax) at a price you can sustain after any intro offer ends.
How much should small business accounting software cost? Most sole traders and landlords pay £5–£20 a month and small limited companies £10–£40, excluding VAT. Add-ons such as payroll can push the bill higher.
Do I need accounting software for Making Tax Digital? Yes, if you're in scope. VAT-registered businesses and sole traders or landlords over the MTD Income Tax threshold must keep digital records and file through compatible software.
Can I use accounting software on a Mac? Yes. Browser-based software works on a Mac with nothing to install. Check older desktop products support macOS.
Is online accounting software safe? Reputable providers encrypt your data and back it up. Turn on two-step verification and only give logins to people who need them.
Can I switch accounting software mid-year? Yes. Most providers import opening balances, customers and suppliers from a CSV file. Switching at the start of a VAT quarter or tax year is the tidiest.
This article is general guidance based on HMRC guidance and providers' published prices as of October 2026. It is not tax advice. Prices exclude VAT and change often; check each provider's website before you buy.