Running a business in the UK means wearing many hats simultaneously including an accountant.
If you trying to tally up invoices as well as decode tax jargon, financial management can be the toughest task. But what if I say that there is an easier way?
Often small business owners in the UK struggle with managing their business finances, but now there is good news for business owners, you don’t require any degree or course to keep your books in order.
With a wide variety of the best free accounting software, designed particularly for small businesses, so now you can simplify a process and avoid costly errors.
Let’s dive into the best free accounting software options that can take this burden off your shoulders and help you focus on what matters to grow your business.
5 Best free accounting software for small businesses:
Every accounting software listed below has its features, they are free to use. These software are user friendly so you don’t need to have a course or degree to use it.
1. QuickFile:
QuickFile is cloud-based accounting software that allows users to automatically import transactions by connecting to 50 UK banks over 300 other web services.
QuickFile is the first choice of many freelancers, entrepreneurs, and small businesses.
What do I like about QuickFile software?
Quickfile offers a wide range of advanced accounting functions, on top of its USP of payment features.
I particularly like that it can be used to create estimates, purchase orders, and delivery notes, making it a great option for dropshipping firms.
Features:
- Compliant with making tax digital for VAT
- Great range of payment features to reduce invoice delays
- A mobile app lets users manage expenses and transactions on the go
- Could-based,
- Work on the web browsers,
- Compatible with mobile and tablet
2. Zoho Books:
Zoho Books offers a free version with essential features for small businesses. Users can design voices and create custom views to analyze transactions based on specific criteria.
Most exciting you can also use Zoho Books to make bespoke email templates. If you are sending an invoice to a supplier or client.
What do I like about the Zoho Books?
Zoho Books has excellent customization tools and a friendly interface, this software is also fully tax digital compliant, which means it can be used to submit a VAT return to HMRC.
These require to be sent every time months and they can be a pain to build so it’s incredibly handy that Zoho Books permits this as part of its platform.
Features:
- Integrate with all other Zoho apps and key business platforms like Office 365
- Cloud-based work on web browsers mobile and tablet
- Compliant with making tax digital so you can submit a VAT return
- Brilliant for customization and building branded invoice email templates
3. GnuCash:
GnuCash is open-source desktop accounting software, which means that, unlike a cloud-based system, you will be required to download and install it onto your device.
The code is also available to anyone, allowing volunteer developers to add extra functionalities or fix errors. This makes the platform very flexible and completely free forever.
What do I like about GnuCash?
GnuCash is best used for basic data entry. If you are a micro business with a limited number of transactions each month then you can use GnuCash to efficiently manage your finances while avoiding the complexity of feature-rich software.
Features:
- Automatically add VAT to sales invoices
- Add tax information to the sale invoice
- Generate a PDF invoice to send to the client
- Build reports to track profits and losses to business overhead.
4. VT Cashbook:
VT Cashbook is a desktop software means you will be required to install it on a desktop, and the plus point is you don’t need an internet connection to use it.
The free version offers basic functionality allowing you to record day-to-day cash transactions and prepare profit and loss statements and balance sheets.
However, you will be required to upgrade to the paid version if you want to create and file tax digital VAT returns.
What do I like about the VT cash book?
VT Cashbook is best thought of as a solid way to record your payments and recipes.
It is short on advanced features but you will be able to run limited reports on reports on profit and loss, balance sheets, ledger activity, and transaction lists.
Features:
- Fast data entry with autocomplete features
- Stripped back, user-friendly interface is designed for those with limited accounting expertise.
5. FreeAgent:
FreeAgent is only free to business banking customers of Natwest/ Royal Bank of Scotland, but it is a powerful piece of cloud-based software that is used by 90,000 small businesses in the UK.
It allows you to automatically generate VAT returns and completes the majority of the self-assessment tax returns form for you.
It also gives you a clear view of the income, time, and expenses associated with each project so you can see whether you are making a profit or loss in real-time.
What do I like about VT Cashbook?
FreeAgent has all of the core accounting features that Zoho Books and QuickFile offer.
Interestingly, it also boasts time tracking tools, so you can easily view timesheets,w which makes billing clients much simpler as you will know exactly how many hours you have completed on an account each month.
Features:
- Compliant with making tax digital for VAT
- Powerful cloud-based accounting software with a huge range of features
- Dedicated phone and email assistance from UK-based support accountants.
Conclusion:
Free accounting software is hugely attractive to UK small businesses, especially those that are just starting. But you don’t want your small business to stay small.
As I have explained all free accounting software comes with compromises.
If you can afford it, finding a paid solution that will grow with your business like QuickFile or FreeAgent could enable faster growth and smarter cash management for investing.
All brands in this list are either free or offer a 30-days free trial.
It is only by actually using the software that you will be able to work out which is right for you which compromises are tolerable and which extra features are worth their money.
