Having the correct accounting software program will assist your sole dealer enterprise immeasurably.
When you’re dealing with the day-to-day working of your small business, accounting software program can prevent hours of labor and mountains of receipts flooding out of shoeboxes. It’ll additionally show you how to lower your tax payments and cut back the chance of constructing errors. Some even make it simpler to kind a restricted firm if that’s the course you wish to go in.
With all that in thoughts, we’ll be looking at methods to discover the correct accounting software program to your sole dealer companies together with a number of the finest packages available on the market.
How do I discover the correct accounting software program for my sole dealer enterprise?
Earlier than you dive proper in, you’ve positively bought some elements to contemplate. What do you have to be searching for out of your accounting software program? We spoke to specialists from three accountancy and finance companies to seek out out extra.
Free trial
Having a free trial lets you have a taster of various accounting platforms earlier than you decide. That is particularly helpful for those who’re uncertain of the performance you’ll want.
“For those who can experiment and take a look at a number of out then do,” stated Rick Smith, managing director at Forbes Burton. “All of them carry out a really comparable operate, however it’s worthwhile to choose one that’s going to be simple so that you can use. The last word goal ought to be to not make life tougher for your self for the sake of perceived comfort.”
Price
When you’ve established what you need, price is the following essential issue. “Most are evenly priced, however there could also be options that you just want which aren’t included so be sure you examine what options are included. Locking right into a contract and discovering some components are restricted might properly be troublesome and costly down the road,” defined Smith.
Performance
As you possibly can see, the performance itself is massively essential. This may imply many various issues – and watch out about having too little or an excessive amount of performance.
“A major consideration for sole merchants seeking to spend money on new software program is the software program’s Making Tax Digital (MTD) compatibility, whereby sole merchants with a gross earnings of greater than £10,000 can be required to file tax returns electronically from April 6, 2024,” stated Joanne Thorne, technical compliance supervisor at SJD Accountancy. She went on to say that underneath MTD, sole merchants should submit these data on at the least a quarterly foundation. The Self-Evaluation Tax Return (SATR) will then get replaced by a Closing Declaration.
“Within the meantime, it’s enterprise as normal, so it’s advisable to make use of software program that can permit them to submit their SATRs, and software program that may robotically calculate their SATR based mostly on the digital data which might be submitted on the platform can save a whole lot of admin time.”
>See additionally: 9 myths about Making Tax Digital busted
Thorne additionally stated that it’s value contemplating what you want out of your software program from an operational perspective, akin to the choice to run payroll or submit VAT and whether or not your chosen choice helps this. Sole merchants also needs to examine whether or not they want to hyperlink their financial institution accounts to the system.
Then there’s frequent performance which may be very helpful for the on a regular basis working of your small business. “The largest improvement for sole merchants is OCR (optical character recognition) expertise, whereby the accounting package deal self-populates from a photograph that the person takes of their receipt. This removes the necessity for onerous submitting of receipts and makes the method instantaneous,” stated Clare Bowen, director of Monahans accountancy. “That is invaluable when customers are on the highway, going from job to job. When linked to a card fee platform, invoices might be despatched on to purchasers and the person due to this fact will get paid faster.”
As we’ll word a bit later, integrations with platforms you have already got an account with can streamline your small business processes. “You also needs to take a look at how simple it’s to get information and data out of the software program,” stated Smith. “For instance, are you able to export the accounts into one other package deal? Is it simple to work together with different platforms? These are the issues that can gradual you down.”
Ease of use
In fact, having subtle performance isn’t any good if the software program is clunky and troublesome to make use of. “Accounting ought to be one thing you are able to do when you’re out and about, wherever and at any time, as an alternative of in entrance of a spreadsheet on a Sunday afternoon,” stated Bowen. “The important thing for these platforms to be of use to sole merchants is that they have to be comparatively fundamental, with out all of the high-end capability that you just would possibly in any other case want for a bigger company.”
She warned of apps which might be pared-down variations of larger platforms that are typically utilized by those that are VAT-registered, i.e. these whose taxable turnover exceeds the £85,000 threshold. “These are just a little pricier and due to this fact much less suited to sole merchants,” she added.
>See additionally: Sole merchants and VAT
Evolving with your small business
Attempt to go for software program that can go well with your small business sooner or later in addition to at the moment. “Above all, you must spend money on accountancy software program that can evolve alongside you and your small business, with the agility to develop and embody new capabilities as and when required and selecting software program which might be simply up to date to take account of any adjustments in tax laws, akin to MTD, is essential,” stated Thorne.
How your accountant can assist
Your accountant may give you additional steerage on the correct accounting software program for you as a sole dealer, however they might additionally be capable to offer you a software program licence at a diminished price, in keeping with Smith. Nonetheless, they could choose so that you can use the one which they’re aware of, so be ready for that.
Bowen advises having an excellent relationship along with your accountant so that you don’t lose observe of the numbers. “That’s going to turn into extra essential when Making Tax Digital guidelines are prolonged to all those that have a self-employed (and property) earnings of greater than £10,000, from April 2024. From this date, you’ll must submit quarterly returns however with the usage of software program, the thought is that this course of is as environment friendly as potential. That’s why I’d advise any sole dealer who isn’t already on these techniques to begin utilizing them, in order that they’re seeing the advantages and aren’t caught out final minute.”
>See additionally: Hiring an accountant: A small enterprise information
Which accounting software program is correct for me as a sole dealer?
Now, on to the accounting platforms themselves. As talked about, they provide largely comparable performance however there could also be options that stand out to you and your small business’ wants. Right here is an introduction to a number of the prime merchandise available on the market, so as of their least expensive package deal. Extra particulars on every product are listed beneath.
Sage
For sole merchants seeking to simplify funds and focus extra on rising their enterprise, Sage provides a strong, HMRC-recognised cloud-based resolution that mixes important bookkeeping instruments with the cutting-edge comfort of AI automation.
Designed to take the stress out of self-employment accounting, Sage helps you handle your earnings, bills, tax returns, and money movement—all from a single, user-friendly dashboard.
Key Options
- Smarter Invoicing: Create, personalise, and observe invoices simply. Automate reminders that will help you receives a commission on time and keep wholesome money movement.
- Financial institution Feeds and Reconciliation: Join your checking account to import transactions robotically. Apply sensible guidelines to match, switch, or reconcile with minimal effort.
- AI-Powered Automation: From auto-capturing receipts to producing insights and reminders, Sage Copilot helps minimise guide entry and enhance accuracy.
- Self-Evaluation Help: Simplifies SA103 submissions by robotically matching earnings and bills—chopping down errors and saving time.
- Money Circulate Dashboards and Reporting: Acquire real-time visibility into your funds, with clear, customisable dashboards and detailed studies that will help you plan forward.
Execs
- Time-saving automation by means of AI-powered options like Sage Copilot and receipt seize
- Totally compliant with HMRC and Making Tax Digital (MTD) for VAT returns.
- Versatile plans that may scale as your small business grows
Cons
- Some useful options like receipt seize and budgeting are solely out there on higher-tier plans
- Could require a studying curve for customers unfamiliar with accounting platforms
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Accounting Begin | £18 monthly (90% off for 12 months) | Gross sales invoices, financial institution reconciliation, VAT submission, MTD-ready, Sage Copilot |
| Accounting Commonplace | £39 monthly (90% off for 12 months) | All Begin options plus quotes, money movement forecasting, CIS, receipt seize (30) |
| Accounting Plus | £59 monthly (90% off for 12 months) | All Commonplace options plus budgeting, multi-currency invoicing, stock instruments |
Xero
Xero is a number one cloud-based accounting platform trusted by tens of millions of small companies worldwide. For sole merchants, it provides an inexpensive, HMRC-recognised technique to keep on prime of funds, streamline each day admin, and put together for Making Tax Digital (MTD) with ease. With real-time insights, time-saving instruments, and versatile pricing, Xero helps sole merchants work smarter—not more durable—whereas protecting full management of their enterprise funds.
Key Options
- Ship Invoices and Quotes: Create and ship skilled invoices and quotes on the go, serving to you receives a commission quicker and preserve consumer communication seamless.
- Financial institution Reconciliation: Routinely import and reconcile your financial institution transactions to maintain your accounts correct and updated with minimal guide enter.
- MTD for Revenue Tax Prepared: Xero’s compliance with Making Tax Digital ensures you’re absolutely ready for digital tax reporting.
- Seize Receipts and Payments with Hubdoc: Merely add or snap pictures of your payments and receipts. Hubdoc extracts the small print for quicker expense monitoring and record-keeping.
- Money Circulate Snapshot: Entry short-term money movement forecasts and enterprise efficiency dashboards to make knowledgeable monetary selections.
Execs
- Designed to develop with your small business, from fundamental must extra superior options
- Totally HMRC-recognised and prepared for MTD for Revenue Tax and VAT
- Non-obligatory add-ons like CIS submissions and payroll let you tailor options to your particular wants
Cons
- Entry-level plans embody limitations on invoices and payments monthly
- Core options like undertaking monitoring and a number of currencies are restricted to higher-tier plans
- Add-ons like payroll and CIS submissions include extra prices
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Easy | £0.70 monthly (Often £7) | 10 invoices, quotes, MTD for Revenue Tax, financial institution reconciliation, Hubdoc, money movement |
| Ignite | £1.60 monthly (Often £16) | 20 invoices, quotes, VAT submissions, 10 payments, CIS automation |
| Develop | £3.30 monthly (Often £33) | 5 invoice funds, 5 payroll customers, expense claims (5 customers), VAT & CIS |
| Complete | £4.70 monthly (Often £47) | 10 invoice funds, 10 payroll/expense customers, undertaking monitoring, superior money movement |
| Final | £5.90 monthly (Often £59) | 15 invoice funds, 10 undertaking customers, multi-currency, analytics plus |
*All plans embody 90% off for six months when bought by 30 June 2025.
Intuit QuickBooks
QuickBooks is a well-established and extremely trusted accounting resolution, recognized for its flexibility and ease of use. With HMRC recognition for Making Tax Digital (MTD), strong help, and highly effective AI instruments, it’s a perfect selection for sole merchants seeking to streamline monetary duties and keep answerable for their enterprise.
QuickBooks provides you every thing from Self Evaluation prep to real-time money movement insights, with options that develop alongside your small business—no long-term dedication required.
Key Options
- Self Evaluation & MTD for Revenue Tax Prepared: QuickBooks helps sole merchants put together and keep compliant with MTD and Self Evaluation, together with AI-supported tax readiness.
- Sensible Invoicing & Estimates: Simply ship invoices and quotes, and even permit prospects to pay immediately from the bill to hurry up funds.
- Revenue & Expense Monitoring with AI: Separate private and enterprise funds, observe money movement, and categorise transactions robotically with AI-powered instruments.
- Receipt and Mileage Seize: Add or {photograph} receipts and observe mileage effortlessly—superb for managing tax-deductible bills.
- Free Onboarding and Help: Get actual assist from actual individuals with free onboarding classes and ongoing help included in all plans.
Execs
- Easy, intuitive setup superb for non-accountants
- AI instruments assist automate admin and supply helpful insights
- Robust tax compliance options, together with Self Evaluation and VAT
Cons
- VAT and CIS performance solely out there in higher-tier plans
- Some important options (like multi-user entry and forex monitoring) require dearer plans
- Payroll, inventory monitoring, and superior analytics require extra charges or upgrades
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Sole Dealer | £1 monthly (then £10) | Self Evaluation, MTD ITSA, invoicing, AI earnings/bills, money movement, receipts |
| Easy Begin | £8 monthly (then £16) | Provides VAT submitting, CIS returns, payable invoices, VAT reminders |
| Necessities | £16.50 monthly (then £33) | Provides 3 customers, invoice administration, worker time monitoring, multi-currency |
| Plus | £23.50 monthly (then £47) | Provides inventory monitoring, budgeting, 5 customers, undertaking profitability |
| Superior | £46 monthly (then £115) | Provides batch invoicing, Excel studies, automation, backup & restore, 25 customers |
*All plans embody free for 1 month and discounted pricing for six months. VAT not included.
Freshbooks
FreshBooks is a cloud-based accounting platform that gives a easy, trendy resolution for freelancers and enterprise homeowners. With a 30-day free trial and 50% off for the primary 3 months, it’s simple to get began. Designed to simplify invoicing, expense monitoring, and VAT submitting, FreshBooks combines highly effective instruments with a user-friendly expertise that scales with your small business.
Whether or not you’re simply beginning out or managing a rising consumer base, FreshBooks provides you the power to automate admin, collaborate with staff members, and preserve your small business funds organised—all from one clear dashboard.
Key Options
- Invoicing and Funds Made Straightforward: Ship limitless invoices and quotes, settle for funds by bank card or direct debit, and decrease your transaction cap as you improve.
- VAT-Compliant and HMRC-Prepared: Submit Making Tax Digital (MTD) VAT returns on to HMRC, serving to you keep compliant with no stress.
- Shopper and Challenge Administration: Handle consumer profiles, ship proposals, arrange retainers, and observe profitability on particular person tasks with ease.
- Computerized Information Seize: Scan and retailer receipts and payments, observe bills, and pull correct studies for tax time—all with minimal guide enter.
- Versatile Collaboration and Help: Invite your accountant, add staff members as wanted (£8 per person monthly), and entry useful studies and dashboards.
Execs
- Clear, trendy interface with wonderful cellular entry
- MTD-compliant VAT submitting included in all plans
- Good scalability for rising companies
- Straightforward to arrange recurring invoices and consumer retainers
Cons
- Restricted purchasers in lower-tier plans
- Some automation options solely out there in Premium or increased
- Workforce members and superior funds price further (besides in Choose plan)
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Lite | £7.50 monthly (was £15) | Invoicing for as much as 5 purchasers, expense monitoring, quotes, MTD VAT submitting |
| Plus | £12.50 monthly (was £25) | 50 purchasers, recurring invoices, proposals, accountant entry, receipt scanning |
| Premium | £17.50 monthly (was £35) | Limitless purchasers, undertaking profitability, customized e mail templates, invoice seize |
| Choose | Customized pricing | Contains 2 customers, unique help, no FreshBooks branding, migration assist |
Workforce Members: £8 per particular person monthly
Superior Funds: £15 monthly (included in Choose)
All plans 50% off for 3 months + 30-day money-back assure
Ember
For those who’re a freelancer or sole dealer within the UK, Ember provides every thing it’s worthwhile to handle your funds with much less stress—and no spreadsheets. Its devoted sole dealer plans mix highly effective automation with actual human help, making it simple to remain compliant, save time, and give attention to working your small business.
Whether or not you’re simply getting began or managing a gradual earnings, Ember connects immediately along with your financial institution, categorises your transactions utilizing AI, and provides you real-time insights into your tax place. And for those who want professional assist, certified accountants are available to help with filings and questions.
Key Options
- AI-powered bookkeeping that learns your small business and categorises transactions robotically
- Actual-time tax estimates so that you’re at all times ready for what you owe
- Direct submitting to HMRC for Self Evaluation and VAT returns
- Deadline reminders to maintain your funds on observe
- One-click financial institution reconciliation with help for all main UK banks
- Knowledgeable accountant help out there on paid plans
Execs
- Plans tailor-made for sole merchants at each earnings stage
- Free choice out there for brand new or low-revenue companies
- Saves time with automation and categorisation guidelines
Cons
- Restricted options on the free plan
- No telephone help
Pricing
| Plan | Value (Excl. VAT) | For |
|---|---|---|
| Starter | Free | Sole merchants incomes underneath £1,000 monthly |
| Professional | £7.50 monthly (£90 per 12 months) | Sole merchants incomes as much as £5,000 monthly |
| Limitless | £24 monthly (£288 per 12 months) | Sole merchants incomes over £5,000 |
Coconut
For those who’re a sole dealer, freelancer, or landlord uninterested in wrestling with spreadsheets and shoeboxes stuffed with receipts, Coconut is designed particularly for you. It’s not simply accounting software program – it’s a stress-reducing device that brings all your small business funds collectively in a single easy app.
Constructed for the self-employed, Coconut enables you to handle bills, ship skilled invoices, observe earnings, and put together for tax time with zero trouble. You don’t have to be an accounting professional – it does the exhausting work within the background, so you possibly can give attention to getting paid and doing what you like.
Key Options
- Actual-time revenue monitoring: At all times understand how your small business is performing
- On the spot invoicing: Create and ship branded invoices in minutes, even on the go
- Easy expense monitoring: Snap receipts, tag bills, and declare with confidence
- Self Evaluation and MTD-ready: Submit with ease or share along with your accountant
- Computerized financial institution feeds: Syncs with 30+ UK banks and bank cards
- Cell-first, but additionally desktop pleasant: Handle your accounts wherever you’re
- Safe & FCA authorised: With bank-level safety inbuilt
Execs
- Particularly designed for sole merchants and small companies
- Clear, easy interface superb for non-accountants
- No guesswork: see how a lot tax to put aside all year long
Cons
- No tiered plans – only one all-in subscription
- No built-in payroll or VAT-only choice (centered on Self Evaluation)
Pricing
| Plan | Value | Key Options |
|---|---|---|
| Month-to-month Plan | £9.95/month | All options: financial institution sync, invoices, expense monitoring, tax estimates, and MTD submissions |
| Annual Plan | £99/12 months (save 2 months) | All the things within the month-to-month plan, however cheaper – superb for normal freelancers and sole merchants |
IRIS KashFlow
KashFlow provides a simple approach for sole merchants, freelancers, and small enterprise homeowners to remain on prime of their funds without having an accounting background. With an intuitive interface, sturdy automation options, and cloud entry, KashFlow helps you save time on admin and keep compliant with ease. Whether or not you’re sending invoices, monitoring bills, or dealing with VAT returns, KashFlow’s bookkeeping software program is constructed to simplify the method and offer you extra time to give attention to working your small business.
Key Options
- Easy Invoicing: Create and ship quotes or invoices in a number of clicks—observe standing and receives a commission quicker.
- Financial institution Feeds & Reconciliation: Sync your small business financial institution accounts to robotically import and reconcile transactions.
- VAT Submitting Made Straightforward: Submit VAT returns on to HMRC—excellent for those who’re MTD-registered.
- Receipt Seize on Cell: Snap and add receipts through the free cellular app to trace bills on the go.
- Mileage & Expense Monitoring: Log mileage and enterprise bills shortly, guaranteeing you declare each deduction potential.
Execs
- Nice for brand new sole merchants – Starter plan covers the necessities at a low price
- Accessible on desktop and cellular – Do your books from wherever
- Computerized reminders and simple reporting – Keep compliant and in management
Cons
- Restricted invoicing on Starter plan – Solely 10 invoices monthly until you improve
- Interface feels barely dated in comparison with trendy opponents
- Payroll options locked behind dearer plans – Not superb for those who plan to rent
Pricing
| Plan | Value | Key Options |
|---|---|---|
| Starter | £12.50 monthly (£1.25 monthly for first 6 months) | 10 invoices/month, 25 financial institution transactions, VAT returns, cellular app, receipt seize |
| Enterprise | £25.50 monthly (£2.55 monthly for first 6 months) | Limitless invoices, limitless financial institution transactions, multi-user, mileage monitoring |
| Enterprise + Payroll | £34.00 monthly (£3.40 monthly for first 6 months) | All Enterprise options plus payroll for as much as 5 workers |
ClearBooks
ClearBooks is a UK-based accounting platform designed to assist sole merchants and landlords keep organised, submit tax updates to HMRC, and preserve their enterprise funds in examine. Whether or not you simply want the fundamentals or need extra superior reporting instruments, Clear Books provides scalable plans tailor-made to your wants.
Key Options
- HMRC-recognised for Making Tax Digital (Revenue Tax & VAT)
- Simply file earnings and bills
- Join financial institution feeds with auto-matching
- Create and ship invoices with customized branding
- Entry a rising set of studies and monetary instruments
Execs
- Free MTD-compatible plan superb for brand new sole merchants
- Scales properly with your small business because it grows
- Good help for each VAT and building trade wants
Cons
- Extra superior options locked behind higher-tier plans
- Interface is much less trendy in comparison with newer platforms
- Pricing will increase sharply as options are added
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| MTD Revenue Tax Free | £0 monthly | MTD Revenue Tax updates, file earnings/bills, invoicing, financial institution feeds, no limits |
| Small | £13.50 monthly (£6.75 monthly for first 3 months) | All the things in Free, plus full reporting, quotes, fee reminders, integrations |
| Medium | £27.90/mo (£13.95 monthly for first 3 months) | Provides VAT submissions, CIS, buy orders, budgets, superior reporting |
| Massive | £36.90/mo (£18.45 monthly for first 3 months) | Provides undertaking accounting, multi-currency, mounted belongings, worker bills |
FreeAgent
FreeAgent is an HMRC-recognised accounting device tailor-made for UK sole merchants. With automation, insightful dashboards, and cellular performance, it’s constructed to make each day admin simpler whereas protecting you answerable for your funds and taxes.
Key Options
- Invoicing, estimates, and on-line funds in a single place
- MTD-ready VAT and Self Evaluation submitting on to HMRC
- Sensible receipt seize and automated expense monitoring
- Constructed-in undertaking and time monitoring instruments
- Actual-time tax timeline, cashflow forecasts, and automatic financial institution feeds
Execs
- Wonderful tax instruments together with Self Evaluation and real-time tax timeline
- Free plan out there for sure financial institution prospects
- Complete cellular app and automation options
Cons
- Receipt seize restricted to 10 monthly with out £5 add-on
- No tiered characteristic set—worth the identical no matter enterprise dimension
- Amazon integration requires further month-to-month charge
Pricing
| Plan | Value | Key Options |
|---|---|---|
| Free | £0 monthly | Full entry to all core options so long as you keep an eligible account |
| Month-to-month | £19 monthly (£9.50 monthly for first 6 months) | Invoicing, bills, tax submitting, financial institution feeds, time monitoring, undertaking administration |
| Yearly | £190 per 12 months (£95 for first 12 months) | Identical as month-to-month however with 20% financial savings when billed yearly |
Crunch
Crunch provides an all-in-one accounting package deal designed particularly for sole merchants, combining easy-to-use software program with limitless professional accountant help. It helps you save time on admin, keep compliant with HMRC, and cut back your tax invoice with built-in tax optimisation.
Key Options
- Self Evaluation tax returns included and filed in your behalf
- Limitless entry to professional UK accountants with no further charges
- Automated expense and bill administration to save lots of time
- Making Tax Digital (MTD) Revenue Tax Self Evaluation prepared
- Cell app to handle your accounts wherever, anytime
- Private tax estimates based mostly in your precise enterprise efficiency
- Devoted consumer administration and HMRC registration help
Execs
- Limitless accountant recommendation included at no further price
- Clear pricing with no hidden charges
- Constructed-in tax optimisation to probably prevent cash
Cons
- Pricing begins low solely with promo; common worth is increased
- Restricted to sole merchants; no multi-user enterprise plans detailed
- No detailed breakdown of software program options in comparison with some opponents
Pricing
| Plan | Value | Key Options |
|---|---|---|
| Sole Dealer Professional | £1 monthly + VAT for first 3 months (then £27) | Self Evaluation submitting, limitless accountancy help, HMRC registration, devoted consumer administration |
Learn extra
Greatest enterprise financial institution accounts for sole merchants
