Currently, multiple accounting software programs are available in the market and they claim to be the best accounting software for streamlining accounting processes for all types of businesses, especially smaller ones like yours. However, rather than focus on all of them, we will concentrate on the four best accounting software and they are Xero, Sage, QuickBooks, and FreeAgent.
Let’s start with Sage which is popular among accountants and was quite highly recommended. But with the advent of cloud-based software, Sage has been getting tough competition, but that does not mean its relevance has diminished. QuickBooks is also one of the best accounting software. It has also successfully transitioned into a cloud service and has invested heavily to provide a wide range of services.
The third best accounting software we will discuss is Xero, a cloud-based subscription software. Xero, launched in 2006, has gained popularity and is recommended by every other accountant. Lastly, we will also compare FreeAgent, launched in 2007, as purely a SaaS service.I
In this blog, we will compare each software for usability, features, support, pricing, reporting, and connectivity. We hope that by the end of this blog, we will find out which is the best accounting software for small businesses in the UK. Let’s get on with it.
Best Accounting Software in Usability
FreeAgent
When it comes to usability, nothing can beat FreeAgent’s neat interface making it the best accounting software in this category. The accounting software is designed so that it is easy for a first-time user to understand.
Xero
Coming close is Xero, which features a user-friendly design and easy usability. It may not be as user-friendly as FreeAgent, but its features make up for that. In addition, it has a huge range of third-party apps.
QuickBooks
One main problem with QuickBooks is that it has all the features, but it is difficult to understand how to access them. While it has made good efforts to improve the user experience based on the feedback it received, we still think it has a long way to go.
Sage
Sage lags in usability because it’s designed based on Sage line 50, a desktop version, making it ideal only for trained and experienced accountants. This accounting software is also time-consuming and hard to set up, and its features are very complicated.
Best Accounting Software in Features
QuickBooks
QuickBooks has some excellent features, and even the oldest version has features like receipt scanners, PayPal-enabled invoicing, and mileage tracking. By upgrading it further, you will get multi-currency, budgeting, and stock management.
Xero
Xero is not far away when it comes to features that are available in a wide range. Some of these features are so good that without Xero, you would have had to buy them separately.
Sage
Sage features allow you to track stock, manage cash flow, manage departments, and have outstanding reporting. However, you will need to pay and get a professional license to manage projects and use sales and purchase orders.
FreeAgent
Compared to other accounting software, FreeAgent has the fewest features because it has been designed with freelancer accounting in mind. Advanced features such as department tracking and multi-currency support will be required once freelancers transition into big companies.
Best Accounting Software in Support
When you start using the best accounting software, it is expected that you may need to learn how to use it efficiently and may be unaware of many features. At this point, you will require help because you may know a lot about accounting but not about accounting software. Therefore, it is important to get support from time to time.
FreeAgent
FreeAgent offers excellent support to its users through webinars for training and its articles. You can also call a support staff member for support.
Sage
Sage accounting software has been in the market for some time, but we must admit that its customer support is not up to par. This lack of support is damaging the software’s reputation.
QuickBooks and Xero
Both these softwares are great in features, but they lack the required support when users ask for it. Here, it is important to note that QuickBooks and Xero have excellent features and are also user-friendly, which makes support irrelevant.
Best Priced Accounting Software
There is not much difference in pricing between these software’s, although the difference in overall cost may impact users. While all these software offer flexible pricing options based on the client’s requirements, there is still not much difference.
QuickBooks
QuickBooks pricing makes it ideal for small businesses. If you want to handle simple things such as VAT submissions, invoicing, and receipt tracking, the pay will be pretty reasonable, making it the best accounting software in this category. Check out the latest price here.
Sage
Sage is very close in the race with regard to pricing. At normal Sage pricing, you can create and send invoices, track invoices and payments, use automatic bank reconciliation, and calculate and submit VAT. You can also make payroll payments with extra payments. Here is the latest information on Sage pricing plans.
FreeAgent
Prices of FreeAgent is based on the type of company that uses its services. Hence, there are different price plans for self-employed people, limited companies, and partnerships. You can check the FreeAgent price plans yourself.
Xero
Xero’s starter plans were usually £15, but now £3.75 GBP per month, which only means that Xero is playing catch-up. In our view, Xero is ideal for businesses with a low number of transactions.
It is important to take the pricing into consideration and investigate what you are getting from it. It is also important to avoid getting convinced by special offers.
Best Accounting Software When it Comes to Reporting
A best accounting software always stores records in an organised manner. However, you must also consider how easily you can access this information when required.
QuickBooks
QuickBooks is considered the best accounting software in reporting because its dashboard is excellent, and it has a perfect tracking mechanism that allows it to track an unlimited departments. However, its reports could be better, especially from the desktop version.
Xero
Xero offers customised report templates and a new reporting dashboard. However, its reporting standards are lower than those of Sage and QuickBooks.
FreeAgent
FreeAgent’s near-perfect dashboard is enough for most users, but it does not offer the in- depth reporting that QuickBooks offers.
Sage
Sage has multiple intricate accounting features, but its reporting will require improvement.
Best Accounting Software in Connectivity
Xero
Xero can connect to various Google Play or Play Store apps, thus making it one of the best accounting software in this category.
QuickBooks
QuickBooks fares well when it comes to connectivity with apps available in the market.
FreeAgent
FreeAgent can connect with fairly limited apps compared with Xero and QuickBooks. However, it integrates well with Zapier, Stripe, and Basecamp.
Sage
The connectivity that Sage offers with apps is limited. While it can connect with Sage products like Sage Pay and Payroll, you will feel let down if you are looking for seamless connectivity with other apps and your CRM system.
Conclusion
We started the blog with a question: Which is the best accounting software for small businesses? Well, after reading this blog, you and I must have come to the same conclusion: It’s difficult to answer. It all depends on your requirements.
Small businesses like yours will find FreeAgent reasonably practical thanks to its helpful interface, but it needs features. On the other hand, Xero and QuickBooks have more features, making them ideal for slightly more prominent businesses. Our opinion would be to first analyse your requirements; it will help you choose the best accounting software for your business.
If you are finding it difficult to select the best accounting software or operate a accounting software, then you should seek the help of experts like CoxHinkins. Our accountants are well-trained in Xero, QuickBooks FreeAgent, and Sage accounting software. We also offer year-end, payroll, bookkeeping, management, and VAT services, to name a few. We can connect at your convenience by phone or online meeting to discuss our services in detail.
Disclaimer: Kindly note this blog provides general information and should not be considered financial advice. We recommend consulting a qualified financial advisor for personalised guidance. We are not responsible for any actions taken based on this content.
