The AI TillOur picks
Best accounting tools for UK small businesses (2026)
We compared 5 accounting tools using prices and plan details checked on each provider's own page on 2026-10-14. We haven't been paid for any placement; see how we make money.
Quick picks
- Best free starting point: Zoho Books. Zoho Books has a free plan: Free plan for sole traders and micro businesses.
- Best priced in pounds: QuickBooks. QuickBooks publishes UK prices: £10 (entry plan, per month), so there are no exchange-rate surprises.
All accounting tools compared
| Tool | Cheapest paid plan | Free plan | Best for |
|---|---|---|---|
| Xero | £18 (Ignite, per month excl. VAT) | No | Limited companies and VAT-registered businesses that want an accountant-friendly system. |
| QuickBooks | £10 (entry plan, per month) | No | Small businesses wanting invoicing and VAT in one place, with AI help on expenses. |
| FreeAgent | £33 (standard, per month excl. VAT) | No | Sole traders and freelancers, especially with an eligible bank account. |
| Sage Accounting | £20 (Start, per month excl. VAT) | No | VAT-registered sole traders and small firms wanting payroll and CIS in one place. |
| Zoho Books | £12 (Standard, per month (£10 billed annually)) | Yes | Sole traders who want free accounts software in pounds. |
Xero
Cloud accounting for invoices, bank feeds, VAT and payroll, with AI-assisted features.
- Price: Ignite: £18 a month. Grow: £39. Comprehensive: £55. Ultimate: £70 (all excl. VAT). Intro offers run on the pricing page. Payroll £1.50 per person.
- Watch out for: Intro prices last six months; budget for the full price.
- UK notes: UK pricing in pounds; Making Tax Digital compatible.
QuickBooks
Cloud accounting with invoicing, expenses and VAT, plus Intuit Intelligence AI features (some in beta).
- Price: UK plans from £10 a month, with others at £16, £38 and £56 a month; introductory discounts are offered. 30-day free trial.
- Watch out for: AI features have limited monthly capacity on some plans.
- UK notes: UK pricing in pounds.
FreeAgent
UK accounting software for sole traders, partnerships and small companies.
- Price: £33 a month or £330 a year (excl. VAT), with introductory discounts. Free if you keep a business account with NatWest, RBS or Ulster Bank, or use Mettle (conditions apply).
- Watch out for: Check the conditions for the free bank offer.
- UK notes: UK company, pounds.
Sage Accounting
UK accounting and payroll software with the Sage Copilot AI assistant included in every plan.
- Price: Start: £20 a month. Standard: £43 a month. All excl. VAT. Offer when checked: 90% off for 6 months.
- Watch out for: Check the price after the introductory offer ends.
- UK notes: UK company, pounds, Making Tax Digital and CIS support.
Zoho Books
Accounting software with a free plan for very small businesses and paid UK plans.
- Price: Free: £0. Standard: £12 a month (£10 billed annually). Professional: £24 (£20). Premium: £30 (£25). Per organisation.
- Watch out for: Check the free plan's limits on revenue and features.
- UK notes: UK pricing in pounds.
How to choose
- Start with a free plan or trial if there is one, and test it on a real job.
- Prefer pound pricing if you want a predictable monthly cost.
- Check what counts towards limits (calls, minutes, seats, contacts or credits) before comparing headline prices.
Head-to-head comparisons
- Xero vs QuickBooks
- Xero vs FreeAgent
- Xero vs Sage Accounting
- Xero vs Zoho Books
- QuickBooks vs FreeAgent
- QuickBooks vs Sage Accounting
- QuickBooks vs Zoho Books
- FreeAgent vs Sage Accounting
- FreeAgent vs Zoho Books
- Sage Accounting vs Zoho Books
Sources
- Xero UK pricing
- QuickBooks UK pricing
- FreeAgent pricing
- Sage Accounting UK pricing
- Zoho Books UK pricing
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