Best Cloud Accounting Software for Small Business

Business Management Software

Nowadays, small businesses are increasingly looking to cloud-based accounting solutions to manage their bookkeeping, payroll, tax returns, and statutory accounts.

Cloud-based services offer a Software as a Service (Saas) business model, where the small business pays a small monthly fee regularly instead of forking out hundreds or thousands of pounds upfront.

These kinds of accounting software securely manage and store the company’s financial records ‘in the cloud.

This means these records can be accessed at any time and from any device.

Some online accounting software also offers apps for tablets and smart-phones.

That makes it even simple for small business owners to manage payroll or balance sheet while on the move.

Here we are listing some best cloud accounting software for small business, let’s have a look:

1. QuickBooks

QuickBooks is the best overall software for small businesses.

Not only the majority of small business accounting professionals use QuickBooks, but also there are endless online training forums and resources to get support when needed.

All accounting features can be accessed on one main dashboard, making bookkeeping more efficient and fluid.

Pros of QuickBooks:

  • Mobile app
  • Cloud-based
  • Scalable
  • Commonly used by accounting professionals
  • Integrated with third-party applications
  • Additional reporting and monitoring tools

Cons of QuickBooks:

  • Upgrade required for more users
  • Occasional syncing issues with banks and credit cards
  • Lack of barcode scanning

Price of QuickBooks:

The subscription price starts at £12 per month and is currently reduced to £5 per month for the first six months.

2. Xero

Xero is one of the best cloud accounting software for small businesses that are looking for very simple accounting software.

Xero has a clean interface and fully integrates with a third-party payroll service.

Small businesses can collect payment online from customers through Xero’s integration with Stripe and GoCardless.

Pros of Xero:

  • Mobile app
  • Cloud-based
  • Third-party app marketplace
  • Simple inventory management
  • Payroll
  • Projects
  • Employee expense claims
  • Multi-currency
  • Payroll integration with Gusto

Cons of Xero:

  • No telephone customer service
  • Fees charged for ACH payments
  • Limited reporting
  • Basic inventory management

Price of Xero:

Pricing of Xero’s cloud accounting software starts at £10 per month and is reduced to £5 for the first three months.

3. Zoho Books

Zoho Books is applauded for being an extremely customizable small business accounting software.

You can integrate Zoho Books with lots of app from Zoho’s own suite, as well as third-party apps.

Zoho books can help you issue invoices, sort expenses, and track inventory.

Pros of Zoho Books:

  • Cloud-based
  • Mobile app
  • Easy to use
  • User-friendly interface
  • Zapier integration
  • Integrate with a wide range of apps

Cons of Zoho Books:

  • Doesn’t have a payroll feature
  • The response time for customer support is a bit low

Price of Zoho Books:

Prices of Zoho books start at £6 a month plus you can also have a free trial period.

4. FreshBooks

The most important accounting need for service-based small businesses is invoicing.

FreshBooks provides more customizations in invoicing compared to other accounting software.

FreshBooks primary function is to send, receive, print, and pay invoices but it can also take care of your small business’s basic bookkeeping needs as well.

FreshBooks makes it easier for service-based small businesses to send proposals and invoices, request deposits, collect client retainers, receive payments, and track time.

Pros of FreshBooks:

  • Cloud-based
  • Mobile app
  • User-friendly interface
  • Affordable third-party app integration
  • Advanced invoicing features

Cons of FreshBooks:

  • No payroll service
  • No inventory management
  • The mobile app has limitations

Price of FreshBooks:

FreshBooks offers a free trial and has a free version; the paid version for small business starts at £9.50 per month.

5. FreeAgent

FreeAgent is focused on daily admin tasks like invoicing, time tracking, and expense management.

It’s a good cloud accounting software for small business.

You can set invoice reminders and upload pictures of your receipts.

Pros of FreeAgent:

  • Cloud-based
  • Mobile app
  • Send estimates as well as proposals
  • Offers customizable invoice template
  • Gives profit and loss statements
  • Automates bank feeds
  • Time tracking

Cons of FreeAgent:

  • Some currency transactions need to be done manually
  • A bit expensive than competitor software

Price of FreeAgent:

Pricing for FreeAgent starts at £19 per month for sole traders with 50% off for the first six months.

Besides that, if you are a Simply Business Customer, you can get a 15% lifetime discount.

Alternatively, you can claim a 10% lifetime discount by using a FreeAgent referral code.

6. Sage Business Cloud Accounting

Sage is a big enterprise software provider, but Sage Business Cloud Accounting is its cloud accounting software offering for small businesses.

Sage Business Cloud Accounting can help you with everything you’d expect, like invoicing, cash flow, and payroll.

Pros of Sage Business Cloud Accounting:

  • Cloud-based
  • Mobile app
  • A powerful range of features
  • Easily add other Sage services as your business grows
  • Dated user interface
  • Bank statement imports

Cons of Sage Business Cloud Accounting:

  • No time tracking
  • Some reports lack visual impact

Price of Sage Business Cloud Accounting:

Pricing for Sage Business Cloud Accounting starts at £12 per month, and it’s currently reduced to £3.60 per month for the first four months.

Final Thought!

Financial bookkeeping was previously complicated and time-consuming, but now cloud accounting software makes it much more comfortable and fast.

Besides, the most common issue among small businesses in the UK is the lack of cash flow. But effective bookkeeping and money management by using such cloud-based accounting software can dramatically help small businesses succeed.


Nidhi is a Content crafter at 123Financials – An accounting firm in London. She is a Financials writer, blogger for the last 2 years – she loves traveling, photography, reading, and hanging out with friends and family.


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