Its handy VAT error checker and other tools will help you prepare for self-assessments. If you are a large business, the difference in true profits and VAT when miscalculating your COGS can be significant. We’ve worked with thousands of eCommerce stores since launching Link My Books in 2018. And, we’ve come to a worrying conclusion; 75% of eCommerce sellers make mistakes with their taxes. From April 2026, all businesses with an annual income of £50,000 or more will be required to topic no 556 alternative minimum tax comply. And then the following April (2027), those with an income of over £30,000 will join them.

Pricing

Dext Prepare simplifies the tedious tasks of managing receipts, invoices, and bank statements by automatically extracting key data and integrating it with your accounting software. This eliminates manual data entry, reduces errors, and saves valuable time for accountants, bookkeepers, and business owners. Businesses can statement sections save time, reduce errors, and improve vendor relationships by streamlining their bill payment processes.

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You’ll pay more money, but it adds flexibility, such as being able to issue as many invoices and enter as many bills as you like. Overall, Xero offers a good range of plans, including one of the cheapest MTD ready plans. However, it has more limited telephone support and one locking cash box of the more expensive multi-currency plans.

Sage Accounting – best for micro businesses with limited stock

Both maintain accurate financial records and assist with income tax obligations. With Link My Books, you don’t need to worry about that because it’s worked out for you. Just turn on the COGS feature and COGS is automatically included in your summary invoices. Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. Today, the Toronto-based company has over 500 employees and more than 30 million people in over 160 countries have used FreshBooks. Get a quick, at a glance summary of what the top 7 providers offer or read on for deep dive reviews.

It provides financial reports such as profit and loss statements, balance sheets, and cash flow forecasts, giving businesses deeper insights. Xero also offers dedicated support with webinars, guides, and training to help users get the most out of the platform. Clear Books offers timesheet tracking to record billable hours for clients, stock level tracking, and dividend payment tools. It also allows seamless integration with payroll services, enabling easy employee management. On the other hand, a basic accounting software for one-user might be ideal for a very small business or sole traders. Take note of how many people you’ll need to access the online accounting software and compare plans from each company.

1. This plan allows users to send unlimited invoices to up to five clients, track unlimited expenses, send unlimited estimates, and accept credit card payments.
2. It has all the features small business owners need to keep on top of their books and remain MTD-compliant.
3. Overall, Xero offers a good range of plans, including one of the cheapest MTD ready plans.
4. It offers three plans ranging from £6.08 to £16.20 per month, providing an affordable option for companies in need of assistance managing their money.
5. It offers advanced reporting features, enabling users to generate balance sheets, general ledgers, and cash flow statements.
6. The software is cloud-based, so you can access your dashboard and manage your books from your PC, laptop, or smartphone, whether you’re in the office or on the go.

Link My Books is a specialised type of eCommerce accounting software, ideal for both eCommerce sellers and accountants. It links eCommerce stores with either Xero or QuickBooks accounting software. Once set up, your data is automatically transferred from one to the other for a seamless accounting experience. It might seem far away, but getting your accounting software in order now will streamline the process of gathering and organising your financial records, ensuring a smooth tax return filing. Its intuitive design allows users to quickly and easily enter data, such as sales, purchases, and expenses, for bookkeeping that you don’t need a maths degree to understand.

Factors to Consider When Choosing the Best UK Accounting Software

Zoho Books is the cloud-based accounting component of a larger suite of business solution tools. In addition to accounting software, Zoho offers more than 40 enterprise-level online applications to grow sales, market your business, communicate with teammates, provide customer service and more. Businesses that need an integrated business ecosystem will have a hard time finding a more robust business suite. With accounting software, even the smallest business can easily manage expenses, create and send invoices, keep on top of taxes, and more from one centralised platform.