Accounting & Bookkeeping

Keep your finances organised and your records HMRC-ready.

Accounting and bookkeeping software helps you keep your finances organised throughout the year, not just at tax return time. At its most basic, it tracks your income and expenses so you know where your money is going. At its most complete, it handles bank feeds, invoicing, VAT, payroll and HMRC submissions all in one place. For sole traders, good bookkeeping makes self assessment significantly less stressful - and for those approaching Making Tax Digital thresholds, it’s becoming a practical necessity.

What to look for

• Free vs paid - genuinely capable free options exist. QuickFile has a generous free tier for smaller businesses; Wave is completely free; Zoho Books is free under £50k turnover. Paid options like Xero, QuickBooks and Sage offer more automation and integrations.

• MTD compatibility - if you’ll need to file quarterly updates under Making Tax Digital for Income Tax, check the tool is HMRC-recognised. Xero, QuickBooks, FreeAgent, Sage, Zoho Books, QuickFile and FreeAgent all qualify.

• Bank feeds - automatic bank feed integration saves significant manual data entry. Most paid tools offer this; check which banks are supported before committing.

• Ease of use - Xero and QuickBooks are feature-rich but have a learning curve. FreeAgent is specifically designed for freelancers and tends to feel more straightforward for sole traders. FreshBooks is invoicing-led and suits service businesses well.

• Free with your bank account - FreeAgent is free if you bank with NatWest or Mettle, which is worth knowing if you’re choosing a business bank account at the same time.

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QuickBooks

Popular cloud accounting software covering invoicing, expenses, VAT and self assessment. Widely used by UK sole traders.

Best for: Sole traders who want an all-in-one accounting solution

Pricing: Paid - from £10 +VAT per month

Free trial: Yes

MTD compatible: Yes

Mobile app: Yes

UK specific: No

Visit QuickBooks

Xero

Cloud accounting software with strong bank feed integration, invoicing and MTD support. Popular with growing businesses.

Best for: Sole traders who want automatic bank feeds, strong third party app integrations, and a platform that will scale with them if they take on staff or become a limited company

Pricing: Paid - from £16 +VAT per month

Free trial: Yes

MTD compatible: Yes

Mobile app: Yes

UK specific: No

Visit Xero

FreeAgent

UK-built accounting software designed specifically for freelancers and sole traders. Free for NatWest/Mettle customers.

Best for: Freelancers and sole traders, especially NatWest/Mettle banking customers

Pricing: Free with Natwest, RBS, Ulster Bank or Mettle or £19 +VAT per month

Free trial: Yes

MTD compatible: Yes

Mobile app: Yes

UK specific: Yes

Visit FreeAgent

Sage

Established accounting software brand with a range of products for small businesses and sole traders.

Best for: Sole traders who already use Sage through an accountant or employer, or who want desktop software rather than a cloud-only solution

Pricing: Paid from £7 +VAT per month

Free trial: Yes

MTD compatible: Yes

Mobile app: Yes

UK specific: No

Visit Sage

Zoho Books

Affordable cloud accounting with invoicing, expenses and MTD support. Good value at the lower price point.

Best for: Cost-conscious sole traders who want full-featured accounting software

Pricing: Free / paid tiers

Free trial: Yes

MTD compatible: Yes

Mobile app: Yes

UK specific: No

Visit Zoho Books

FreshBooks

Cloud accounting focused on invoicing and time tracking. Popular with freelancers and service-based businesses.

Best for: Freelancers and service businesses who invoice clients regularly

Pricing: Paid - from £16 +VAT per month

Free trial: Yes

MTD compatible: No

Mobile app: Yes

UK specific: No

Visit FreshBooks

QuickFile

Free UK-built cloud accounting software. Generous free tier for smaller businesses.

Best for: Sole traders on a budget who want free accounting software

Pricing: Free / Paid £60 +VAT per year

Free trial: N/A

MTD compatible: Yes

Mobile app: Yes

UK specific: Yes

Visit QuickFile

Wave

Completely free accounting, invoicing and receipt scanning software.

Best for: Sole traders wanting a completely free solution

Pricing: Free

Free trial: N/A

MTD compatible: No

Mobile app: Yes

UK specific: No

Visit Wave

If you’re just starting out and cost is a concern, QuickFile or Wave give you solid bookkeeping for free. If you want bank feeds, MTD support and a more polished experience, Xero, QuickBooks or FreeAgent are the main options - all offer 30-day trials. NatWest, RBS, Mettle and Ulster Bank customers can access FreeAgent free of charge as part of their business banking - worth checking if you bank with any of these before paying for accounting software separately.

Last reviewed: June 2026