What is the best accounting software for small businesses?

Revolut Contributor

 · August 10, 2020  · 08/10/2020

The world of accountancy software has changed significantly during the course of the last few years and in this blog we are going to attempt to unravel the minefield of online accounting software to give you a clear understanding.

What is Cloud Accounting Software?

Small business accounting is a huge area in which many small business owners struggle to get right. To find the best accounting software for small businesses in the UK we must first assess what cloud accounting is.

Cloud accounting is the process of producing bookkeeping and accounts records that are held on cloud based servers rather than on specific desktops on local machines. All data is stored on the cloud and therefore is significantly more secure than a desktop based solution. It is also more reliable as no specific backups are required, therefore the chance of data loss is minimal.

The key benefit to using online accounting software is that the data can be accessed anywhere and on any device – this becomes an invaluable tool to small business owners.

Who are the key players in this space?

There are many different options in this space including:

  • Xero
  • Intuit Quickbooks
  • Freeagent
  • Freshbooks
  • Wave
  • Sage 50 cloud
  • Zoho books

What is the best accounting software for my small business?

Xero

Xero offers a vast array of features and an extensive list of add ons which help Xero become one of the top players in this space. With Xero you can manage your invoicing, payroll and stock control all within the app. They are constantly adding new features including, short term cashflow and business performance dashboards and the UI is very intuitive and simple to use.

Xero is also very cost effective software starting at £11 per month for unlimited users.

Intuit Quickbooks

Quickbooks online is owned by software giant Intuit and made the transition from desktop based solution to an online version. The software is one of the most feature rich at the price point and offers a lot of additional features at even the cheapest level such as mileage tracking.

Quickbooks also has one of the best mobile apps in the space and allows users to perform most functions the website can do.

Freeagent

Freeagent is targeted at freelancers and contractors and aims to simplify the process of producing the accounts for self employed individuals. The software does not have as many features as Xero or Quickbooks however if you are looking for a simple and easy to use system then Freeagent might be for you.

Freshbooks

Similarly to above, Freshbooks is designed for small businesses and freelancers and offers the basic tasks such as invoicing and expense management. Unlike its larger rivals though you have to pay for each additional user making it more expensive for larger businesses.

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About the author
At Nephos we believe that there’s a better way to grow your business. It’s time to bring your accounting into the digital realm, giving you greater control and clarity. The word ‘nephos’ is Greek for cloud, and nephologists study clouds to understand weather patterns. Like nephologists, we focus on the data held within the cloud, looking for patterns and movements that allow us to make the right financial forecasts and predictions. Nephos was built on the principle that technology can, and should, work harder for your business. Compliance is just one side of the coin – we don’t just help our clients to make sure they’re following the rules, we use our knowledge and insights to ensure they’re building for the future.


Opinions stated are Joe’s own, and do not reflect those of Revolut or Revolut Business.