The Best Accounting Software for Small UK Employers
We’ve reviewed accounting software of all shapes and sizes to select what we think are the best options currently available for smaller UK employers. Check out the scores in the table below to start comparing providers.
Why do employers need special accounting software?
As well as keeping financial records for their business, employers also need to calculate and manage payroll, report taxes, and pay their staff on time. Accurate payroll is only the start of it though, and it’s just as important to reflect all that data in your wider business accounts if you’re going to report and pay your business tax correctly. It can be tricky, but it’s essential for employers to get it right.
Focusing on the needs of UK employers
Our research focused on the needs of smaller employers based in the UK. Larger employers tend to have quite different needs, and this can mean a more expensive solution is needed. Smaller employers can usually work within the realm of off-the-shelf accounting software, rather than specialist payroll packages, so this is where we focused our efforts.
It means some of the big hitters – such as Sage Business Cloud – are missing from the list because they offer payroll software as a separate product. Some providers don’t offer payroll but they do include a workaround. For example, Pandle includes a Wage Adjustment tool which makes it very easy to record wage journals and deductions in your accounts.
Employer and employee tax rules can vary from one country to the next too. The results of our reviews and testing only include accounting software suitable for UK employers who are subject to HMRC rules and other regulations such as auto-enrolment and workplace pensions. The right software can save time, reduce errors, and ensure that employers meet their legal obligations efficiently, and capture the information they need for their bookkeeping easily.
How do we decide how to rank our reviews?
The UK accounting software market offers a wide range of solutions tailored to different business sizes and needs. From cloud-based platforms to traditional desktop software, employers can choose from various options that provide automation, integration with banking services, and real-time financial insights. Selecting the right software can be a challenge, as features, pricing, and usability vary significantly between providers.
Our criteria for reviewing accounting software considers how easy the software is to use, what features are available to help UK employers meet their record-keeping and reporting responsibilities, affordability, and value for money. Each component is scored separately, forming the basis of the overall review score which is calculated automatically. We only look at cloud-based software.
As ever, just like any review, consider your own needs and abilities. We spend a lot of time looking at different software options and have a good idea of what is available for the UK market, but you might need more specialist support if you have very specific requirements. Make that list!
| Software | Features | Overall | Read Review |
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FreeAgent Review |
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Read FreeAgent Review |
QuickBooks Online Review |
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Read QuickBooks Online Review |
Clear Books Review |
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Read Clear Books Review |
Xero Review |
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Read Xero Review |
KashFlow Review |
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Read KashFlow Review |
Bokio Review |
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Read Bokio Review |