Are you trying to grow your company? How about expanding your financial insights, maximizing compliance, and reducing manual data entry? If you are trying to take advantage of any of these items, accounting software is non-negotiable.

Accounting software is a fundamental component of your company’s financial health, helping you track profit and identify areas of opportunity. With each software company offering a different value proposition, it can be difficult to know which to choose.

In this article, we’ll outline the basics of software selection, covering the pros and cons of six offerings and the different factors you should evaluate before making your decision.

Table of contents

Why Use Accounting Software?
How to Choose an Accounting Software?
Top 6 Accounting Software Programs in the UK
– Sage
– QuickBooks
– Microsoft Dynamics 365
– Xero
– Zoho Books
– FreshBooks
Making the Selection

Why Use Accounting Software?

Accounting software eliminates the need for data entry, seamlessly connecting with third-party invoicing software, bank accounts, and credit card accounts. Leveraging accounting software opens the door to a variety of other benefits, including:

  • Accuracy – Accounting software eliminates manual data entry, infusing accuracy into your data.
  • Compliance – With accuracy and access to real-time data, you can improve your compliance with regulatory agencies, such as on-time sales tax filings.
  • Visibility – Accounting software has internal reporting capabilities, generating a slew of different reports to help you track profitability and financial health.
  • Security – Instead of having papers floating around your office, you can house all of your financial information in one secure system.

The possibilities are endless when you choose an accounting software program that scales alongside your business and gives you the right reporting features.

How to Choose an Accounting Software

When evaluating potential accounting software providers, there are a few factors you want to look for. Let’s run through a few of these items before we discuss the top six accounting software programs in the UK.

  • Connections – Your accounting software should have the backend capabilities to connect with your invoicing and expense management software program, like N2F. This reduces errors and operational silos.
  • Growth Abilities – The software program you choose needs to fit your company’s size and activity levels. A software program that lacks large data processing features wouldn’t suit a growing company.
  • Cost – The cost should fit into your monthly budget and offer sufficient value. You wouldn’t want to overpay for software features that you aren’t using. Choose a software program that has an equal trade-off between cost and value.
  • Features – The right software program will have all of the key features you need in a program, such as inventory tracking or payroll processing.

As we are going through different software offerings in the UK, keep these factors in mind when selecting the right program for your company.

Top 6 Accounting Software Programs in the UK

There are dozens of software programs to choose from. We’ve narrowed down the list to the top six offerings in the UK.

Sage

Sage is great for growing enterprises, offering an all-in-one solution for companies. Sage offers payroll, a corporate tax calculator, multicurrency support, third-party app connections, and stock management.

Pros

  • Pricing is based on tiers, allowing you to easily upgrade as your needs change.
  • Extensive backend support is available on any issues within the platform.
  • Navigation is simple and straightforward.

Cons

  • User experience appears dated when compared to other up-and-coming programs.
  • Some navigation features seem tailored to accountants rather than business owners.
  • The inventory tracking app is not well-suited for businesses with numerous product lines.

QuickBooks

QuickBooks is one of the most popular accounting software programs on the market, offering client portals and customizable dashboards. QuickBooks also offers tiered subscription plans, giving you the ability to only pay for the features you are using.

Pros

  • User experience is top-notch, with dashboard and reporting customization.
  • Businesses can add up to 25 users, making it great for scaling businesses.
  • QuickBooks excels at third-party connections, allowing for real-time data automation.

Cons

  • If you have no background in accounting software, there is a steep learning curve.
  • Changing settings and functionality is difficult, with many features hidden.
  • Customer support has long wait times.

Microsoft Dynamics 365

Microsoft Dynamics 365 is an up-and-coming program offering a cloud-based suite of products for businesses that want to manage their entire operations from one system. This software seamlessly integrates with other Microsoft products, like Office 365.

Pros

  • Integration with other Microsoft products and programs.
  • Designed to scale alongside your business with the ability to add users and applications.
  • Customizable modular design to manage workflows and processes more efficiently.

Cons

  • The initial setup and customization of Microsoft Dynamics 365 is costly.
  • Working this program into your operations can be complex, which is why it isn’t designed for small businesses.
  • Large datasets are known to cause performance issues.

Xero

Xero offers over 1,000 third-party app connections and allows you to link over 300 banks and institutions. This software program is best for medium-sized businesses that want to give multiple users access. Similar to QuickBooks, Xero offers automatic bank reconciliations, stock tracking, report customization, and a range of connections.

Pros

  • Great for sales-oriented businesses that need basic stock management.
  • Customer service is comprised of Xero-certified accountants who help you solve any issues or challenges.
  • Features are comprehensive and fill the needs of small-to-medium-sized organizations.

Cons

  • Pricey if you need to record multicurrency transactions or process payroll.
  • No telephone customer support.
  • The Starter plan has very limited offerings and a low transaction processing allowance.

Zoho Books

Zoho Books is a straightforward option for small-to-medium-sized businesses. It’s a great alternative to large programs if you don’t have high levels of transactions or processing needs.

Pros

  • Free plan options.
  • Mobile app that allows you to manage your business from anywhere.
  • Extensive customer support options.

Cons

  • Users are limited to 10, which isn’t ideal for growing organizations.
  • The free plan options only go so far, with many companies needing to foot the bill for more features.
  • Limited integration capabilities with third-party programs.

FreshBooks

FreshBooks works similarly to other accounting software and is very affordable if you don’t need to add customers. This makes it ideal for small businesses and entrepreneurs just starting out that may only have a handful of customers.

Pros

  • Specifically designed for entrepreneurs and small business owners.
  • User experience is engaging and colorful.
  • Affordable for businesses just starting out.

Cons

  • Lower-level plans have client limits, resulting in fees for each additional client added.
  • Additional users increase the plan price.
  • No functionality beyond the basics.

Making the Selection

Which accounting software program sounds right for your business? Remember, the program needs to provide you with the basics but doesn’t need to excel in certain areas like expense management and invoicing. This is where specialized software comes into play, seamlessly connecting to your system to maximize your insights and efficiency.

To learn more about how different software programs work with N2F, reach out to a team member to schedule your free demo.