Having the correct accounting software program helps your sole dealer enterprise immeasurably.
Whilst you’re dealing with the day-to-day working of your corporation, accounting software program saves you hours of labor and mountains of receipts flooding out of shoeboxes. It’ additionally enable you reduce your tax payments and cut back the chance of constructing errors.
And with Making Tax Digital (MTD) for Revenue Tax being phased in from April 2026 (when it applies is dependent upon your gross revenue from self-employment), the earlier you spend money on compliant software program for record-keeping and submitting the higher.
With all that in thoughts, we’ll be looking at how one can 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 received some elements to contemplate. What must you be on the lookout for out of your accounting software program? We spoke to consultants from three accountancy and finance corporations to search out out extra.
Free trial
Having a free trial permits you to have a taster of various accounting platforms earlier than making a decision. That is particularly helpful should you’re uncertain of the performance you’ll want.
“For those who can experiment and check out a number of out then do,” mentioned Rick Smith, managing director at Forbes Burton. “All of them carry out a really comparable perform, however it’s essential choose one that’s going to be straightforward so that you can use. The last word purpose needs to be to not make life harder 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 simply want which aren’t included so be sure you verify what options are included. Locking right into a contract and discovering some parts are restricted might nicely be troublesome and costly down the road,” defined Smith.
Performance
As you may see, the performance itself is vastly vital. This could imply many alternative issues – and watch out about having too little or an excessive amount of performance.
“A main consideration for sole merchants trying to spend money on new software program is the software program’s Making Tax Digital (MTD) compatibility, whereby sole merchants with a gross revenue of greater than £10,000 might be required to file tax returns electronically from April 6, 2024,” mentioned Joanne Thorne, technical compliance supervisor at SJD Accountancy. She went on to say that below MTD, sole merchants must submit these information on no less than a quarterly foundation. The Self-Evaluation Tax Return (SATR) will then get replaced by a Remaining Declaration.
“Within the meantime, it’s enterprise as regular, so it’s advisable to make use of software program that may permit them to submit their SATRs, and software program that may routinely calculate their SATR primarily based on the digital information which might be submitted on the platform can save numerous admin time.”
>See additionally: 9 myths about Making Tax Digital busted
Thorne additionally mentioned that it’s price contemplating what you want out of your software program from an operational perspective, equivalent to the choice to run payroll or submit VAT and whether or not your chosen possibility 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 widespread performance which may be very helpful for the on a regular basis working of your corporation. “The largest growth for sole merchants is OCR (optical character recognition) know-how, whereby the accounting package deal self-populates from a photograph that the consumer takes of their receipt. This removes the necessity for onerous submitting of receipts and makes the method instantaneous,” mentioned Clare Bowen, director of Monahans accountancy. “That is invaluable when customers are on the street, going from job to job. When linked to a card fee platform, invoices may be despatched on to shoppers and the consumer subsequently will get paid faster.”
As we’ll be aware a bit later, integrations with platforms you have already got an account with can streamline your corporation processes. “You also needs to have a look at how straightforward it’s to get knowledge and knowledge out of the software program,” mentioned Smith. “For instance, are you able to export the accounts into one other package deal? Is it straightforward to work together with different platforms? These are the issues that may sluggish you down.”
Ease of use
In fact, having refined performance isn’t any good if the software program is clunky and troublesome to make use of. “Accounting needs to be one thing you are able to do when you’re out and about, wherever and at any time, as a substitute of in entrance of a spreadsheet on a Sunday afternoon,” mentioned 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 simply may 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 a bit pricier and subsequently much less suited to sole merchants,” she added.
>See additionally: Sole merchants and VAT
Evolving with your corporation
Try to go for software program that may go well with your corporation sooner or later in addition to immediately. “Above all, you must spend money on accountancy software program that may evolve alongside you and your corporation, with the agility to develop and embrace new capabilities as and when required and selecting software program which may be simply up to date to take account of any adjustments in tax laws, equivalent to MTD, is vital,” mentioned Thorne.
How your accountant might help
Your accountant may give you additional steering on the correct accounting software program for you as a sole dealer, however they might additionally be capable of give you a software program licence at a decreased price, in accordance with Smith. Nonetheless, they could want so that you can use the one which they’re accustomed to, so be ready for that.
Bowen advises having a superb relationship together with your accountant so that you don’t lose monitor of the numbers. “That’s going to change into extra vital when Making Tax Digital guidelines are prolonged to all those that have a self-employed (and property) revenue of greater than £10,000, from April 2024. From this date, you’ll need to submit quarterly returns however with the usage of software program, the concept is that this course of is as environment friendly as attainable. That’s why I’d advise any sole dealer who isn’t already on these techniques to start out 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 corporation’ wants. Right here is an introduction to a number of the high merchandise available on the market, so as of their least expensive package deal. Extra particulars on every product are listed under.
Sage
For sole merchants trying to simplify funds and focus extra on rising their enterprise, Sage affords a robust, HMRC-recognised cloud-based answer 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 revenue, bills, tax returns, and money circulation—all from a single, user-friendly dashboard.
Key Options
- Smarter Invoicing: Create, personalise, and monitor invoices simply. Automate reminders that can assist you receives a commission on time and preserve wholesome money circulation.
- Financial institution Feeds and Reconciliation: Join your checking account to import transactions routinely. Apply good 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 routinely matching revenue and bills—chopping down errors and saving time.
- Money Stream Dashboards and Reporting: Achieve real-time visibility into your funds, with clear, customisable dashboards and detailed stories that can assist you plan forward.
Professionals
- Time-saving automation by way of AI-powered options like Sage Copilot and receipt seize
- Absolutely compliant with HMRC and Making Tax Digital (MTD) for VAT returns.
- Versatile plans that may scale as your corporation grows
Cons
- Some useful options like receipt seize and budgeting are solely accessible on higher-tier plans
- Might require a studying curve for customers unfamiliar with accounting platforms
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Accounting Begin | £1.80 per thirty days (90% off for six months) | Gross sales invoices, financial institution reconciliation, VAT submission, MTD-ready, Sage Copilot |
| Accounting Normal | £3.90 per thirty days (90% off for six months) | All Begin options plus quotes, money circulation forecasting, CIS, receipt seize (30) |
| Accounting Plus | £5.90 per thirty days (90% off for six months) | All Normal options plus budgeting, multi-currency invoicing, stock instruments |
Xero
Xero is a number one cloud-based accounting platform trusted by thousands and thousands of small companies worldwide. For sole merchants, it affords an inexpensive, HMRC-recognised approach to keep on high 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 tougher—whereas retaining 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 hold shopper communication seamless.
- Financial institution Reconciliation: Mechanically 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 totally ready for digital tax reporting.
- Seize Receipts and Payments with Hubdoc: Merely add or snap photographs of your payments and receipts. Hubdoc extracts the main points for quicker expense monitoring and record-keeping.
- Money Stream Snapshot: Entry short-term money circulation forecasts and enterprise efficiency dashboards to make knowledgeable monetary selections.
Professionals
- Designed to develop with your corporation, from fundamental must extra superior options
- Absolutely HMRC-recognised and prepared for MTD for Revenue Tax and VAT
- Elective add-ons like CIS submissions and payroll can help you tailor options to your particular wants
Cons
- Entry-level plans embrace limitations on invoices and payments per thirty days
- Core options like mission monitoring and a number of currencies are restricted to higher-tier plans
- Add-ons like payroll and CIS submissions include further prices
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Easy | £0.70 for six months (then £7 per thirty days) | 10 invoices, quotes, MTD for Revenue Tax, financial institution reconciliation, Hubdoc, money circulation |
| Ignite | £1.60 for six months (then £16 per thirty days) | 20 invoices, quotes, VAT submissions, 10 payments, CIS automation |
| Develop | £3.70 for six months (then £37 per thirty days) | 5 invoice funds, 5 payroll customers, expense claims (5 customers), VAT & CIS |
| Complete | £5 for six months (then £50 per thirty days) | 10 invoice funds, 10 payroll/expense customers, mission monitoring, superior money circulation |
| Final | £6.50 for six months (then £65 per thirty days) | 15 invoice funds, 10 mission customers, multi-currency, analytics plus |
*All plans embrace 90% off for six months.
Intuit QuickBooks
QuickBooks is a well-established and extremely trusted accounting answer, recognized for its flexibility and ease of use. With HMRC recognition for Making Tax Digital (MTD), strong assist, and highly effective AI instruments, it’s an excellent alternative for sole merchants trying to streamline monetary duties and keep answerable for their enterprise.
QuickBooks offers you every thing from Self Evaluation prep to real-time money circulation insights, with options that develop alongside your corporation—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 clients to pay straight from the bill to hurry up funds.
- Revenue & Expense Monitoring with AI: Separate private and enterprise funds, monitor money circulation, and categorise transactions routinely with AI-powered instruments.
- Receipt and Mileage Seize: Add or {photograph} receipts and monitor mileage effortlessly—excellent for managing tax-deductible bills.
- Free Onboarding and Help: Get actual assist from actual individuals with free onboarding classes and ongoing assist included in all plans.
Professionals
- Easy, intuitive setup excellent 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 accessible in higher-tier plans
- Some important options (like multi-user entry and forex monitoring) require costlier plans
- Payroll, inventory monitoring, and superior analytics require further charges or upgrades
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Sole Dealer | £1 per thirty days (then £10) | Self Evaluation, MTD ITSA, invoicing, AI revenue/bills, money circulation, receipts |
| Easy Begin | £1.60 per thirty days (then £16) | Provides VAT submitting, CIS returns, payable invoices, VAT reminders |
| Necessities | £3.80 per thirty days (then £38) | Provides 3 customers, invoice administration, worker time monitoring, multi-currency |
| Plus | £5.60 per thirty days (then £56) | Provides inventory monitoring, budgeting, 5 customers, mission profitability |
| Superior | £12.30 per thirty days (then £123) | Provides batch invoicing, Excel stories, automation, backup & restore, 25 customers |
*All plans embrace free for 1 month and 90% low cost for 1 12 months.
Freshbooks
FreshBooks is a cloud-based accounting platform that gives a easy, trendy answer for freelancers and enterprise house owners. With a 30-day free trial and 50% off for the primary 3 months, it’s straightforward 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 corporation.
Whether or not you’re simply beginning out or managing a rising shopper base, FreshBooks offers you the power to automate admin, collaborate with group members, and hold your corporation funds organised—all from one clear dashboard.
Key Options
- Invoicing and Funds Made Simple: 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 Mission Administration: Handle shopper profiles, ship proposals, arrange retainers, and monitor profitability on particular person tasks with ease.
- Automated Knowledge Seize: Scan and retailer receipts and payments, monitor bills, and pull correct stories for tax time—all with minimal guide enter.
- Versatile Collaboration and Help: Invite your accountant, add group members as wanted (£8 per consumer per thirty days), and entry useful stories and dashboards.
Professionals
- Clear, trendy interface with glorious cell entry
- MTD-compliant VAT submitting included in all plans
- Good scalability for rising companies
- Simple to arrange recurring invoices and shopper retainers
Cons
- Restricted shoppers in lower-tier plans
- Some automation options solely accessible in Premium or greater
- Group members and superior funds price further (besides in Choose plan)
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Lite | £7.50 per thirty days (was £15) | Invoicing for as much as 5 shoppers, expense monitoring, quotes, MTD VAT submitting |
| Plus | £12.50 per thirty days (was £25) | 50 shoppers, recurring invoices, proposals, accountant entry, receipt scanning |
| Premium | £17.50 per thirty days (was £35) | Limitless shoppers, mission profitability, customized e mail templates, invoice seize |
| Choose | Customized pricing | Consists of 2 customers, unique assist, no FreshBooks branding, migration assist |
Group Members: £8 per individual per thirty days
Superior Funds: £15 per thirty days (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 affords every thing it’s essential handle your funds with much less stress—and no spreadsheets. Its devoted sole dealer plans mix highly effective automation with actual human assist, making it straightforward to remain compliant, save time, and give attention to working your corporation.
Whether or not you’re simply getting began or managing a gradual revenue, Ember connects straight together with your financial institution, categorises your transactions utilizing AI, and provides you real-time insights into your tax place. And should you want professional assist, certified accountants are available to help with filings and questions.
Key Options
- AI-powered bookkeeping that learns your corporation and categorises transactions routinely
- 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 monitor
- One-click financial institution reconciliation with assist for all main UK banks
- Professional accountant assist accessible on paid plans
Professionals
- Plans tailor-made for sole merchants at each revenue degree
- Free possibility accessible for brand spanking new or low-revenue companies
- Saves time with automation and categorisation guidelines
Cons
- Pricing is now not publicly accessible
- Restricted options on the free plan
- No telephone assist
Pricing
| Plan | Value (Excl. VAT) | For |
|---|---|---|
| Starter | Free | Sole merchants incomes below £1,000 per thirty days |
| Professional | Contact for pricing | Sole merchants incomes as much as £5,000 per thirty days |
| Limitless | Contact for pricing | Sole merchants incomes over £5,000 |
Coconut
For those who’re a sole dealer, freelancer, or landlord uninterested in wrestling with spreadsheets and shoeboxes filled 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 corporation funds collectively in a single easy app.
Constructed for the self-employed, Coconut permits you to handle bills, ship skilled invoices, monitor revenue, and put together for tax time with zero trouble. You don’t have to be an accounting professional – it does the laborious work within the background, so you may give attention to getting paid and doing what you’re keen on.
Key Options
- Actual-time revenue monitoring: At all times understand how your corporation is performing
- Prompt 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 together with your accountant
- Automated financial institution feeds: Syncs with 30+ UK banks and bank cards
- Cell-first, but additionally desktop pleasant: Handle your accounts wherever you might be
- Safe & FCA authorised: With bank-level safety in-built
Professionals
- Particularly designed for sole merchants and small companies
- Clear, easy interface excellent for non-accountants
- No guesswork: see how a lot tax to put aside all year long
Cons
- No built-in payroll or VAT-only possibility (targeted on Self Evaluation)
- No pay month-to-month possibility on some plans
Pricing
| Plan | Value (together with VAT) | Key Options |
|---|---|---|
| Necessities + MTD | £21.99/month or £129.99 per 12 months | All options: financial institution sync, invoices, expense monitoring, tax estimates, and MTD submissions |
| + Self Evaluation | £129.99/12 months | Every part above + file your Self Evaluation on to HMRC |
IRIS KashFlow
KashFlow affords a simple method for sole merchants, freelancers, and small enterprise house owners to remain on high of their funds while not 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 provide you with extra time to give attention to working your corporation.
Key Options
- Easy Invoicing: Create and ship quotes or invoices in a number of clicks—monitor standing and receives a commission quicker.
- Financial institution Feeds & Reconciliation: Sync your corporation financial institution accounts to routinely import and reconcile transactions.
- VAT Submitting Made Simple: Submit VAT returns on to HMRC—excellent should you’re MTD-registered.
- Receipt Seize on Cell: Snap and add receipts by way of the free cell app to trace bills on the go.
- Mileage & Expense Monitoring: Log mileage and enterprise bills rapidly, making certain you declare each deduction attainable.
Professionals
- Nice for brand spanking new sole merchants – Starter plan covers the necessities at a low price
- Accessible on desktop and cell – Do your books from wherever
- Automated reminders and straightforward reporting – Keep compliant and in management
Cons
- Restricted invoicing on Starter plan – Solely 10 invoices per thirty days until you improve
- Interface feels barely dated in comparison with trendy opponents
- Payroll options locked behind costlier plans – Not excellent should you plan to rent
Pricing
| Plan | Value (Excl. VAT) | Key Options |
|---|---|---|
| Starter | £12.50 per thirty days (£1.25 per thirty days for first 6 months) | 10 invoices per thirty days, 25 financial institution transactions, VAT returns, cell app, receipt seize |
| Enterprise | £25.50 per thirty days (£2.55 per thirty days for first 6 months) | Limitless invoices, limitless financial institution transactions, multi-user, mileage monitoring |
| Enterprise + Payroll | £34.00 per thirty days (£3.40 per thirty days for first 6 months) | All Enterprise options plus payroll for as much as 5 staff |
ClearBooks
ClearBooks is a UK-based accounting platform designed to assist sole merchants and landlords keep organised, submit tax updates to HMRC, and hold their enterprise funds in verify. Whether or not you simply want the fundamentals or need extra superior reporting instruments, Clear Books affords scalable plans tailor-made to your wants.
Key Options
- HMRC-recognised for Making Tax Digital (Revenue Tax & VAT)
- Simply report revenue and bills
- Join financial institution feeds with auto-matching
- Create and ship invoices with customized branding
- Entry a rising set of stories and monetary instruments
Professionals
- Free MTD-compatible plan excellent for brand spanking new sole merchants
- Scales nicely with your corporation because it grows
- Good assist for each VAT and building business 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 |
|---|---|---|
| Sole Dealer / Sole dealer + VAT | £5 / £15 per thirty days | MTD Revenue Tax updates, report revenue/bills, invoicing, financial institution feeds |
| Small | £15 per thirty days (£7.50 per thirty days for first 3 months) | Every part in Free, plus full reporting, quotes, fee reminders, integrations |
| Medium | £31/month (£15.50 per thirty days for first 3 months) | Provides VAT submissions, CIS, buy orders, budgets, superior reporting |
| Massive | £41/month (£20.50 per thirty days for first 3 months) | Provides mission 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 cell performance, it’s constructed to make each day admin simpler whereas retaining 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 mission and time monitoring instruments
- Actual-time tax timeline, cashflow forecasts, and automatic financial institution feeds
Professionals
- Wonderful tax instruments together with Self Evaluation and real-time tax timeline
- Free plan accessible for sure financial institution clients
- Complete cell app and automation options
Cons
- Receipt seize restricted to 10 per thirty days with out £5 add-on
- No tiered function set—worth the identical no matter enterprise dimension
- Amazon integration requires further month-to-month price
Pricing
| Plan | Value | Key Options |
|---|---|---|
| Free | £0 per thirty days | Full entry to all core options so long as you preserve an eligible account |
| Month-to-month | £19 per thirty days (£9.50 per thirty days for first 6 months) | Invoicing, bills, tax submitting, financial institution feeds, time monitoring, mission administration |
| Yearly | £190 per 12 months (£95 for first 12 months) | Similar as month-to-month however with 20% financial savings when billed yearly |
Crunch
Crunch affords an all-in-one accounting package deal designed particularly for sole merchants, combining easy-to-use software program with limitless professional accountant assist. 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 primarily based in your precise enterprise efficiency
- Devoted shopper administration and HMRC registration assist
Professionals
- Limitless accountant recommendation included at no further price
- Clear pricing with no hidden charges
- Constructed-in tax optimisation to doubtlessly prevent cash
Cons
- Pricing begins low solely with promo; common worth is greater
- 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 (Excl. VAT) | Key Options |
|---|---|---|
| Sole Dealer Professional | £21.60 per thirty days (20% off for six months, then £27) | Self Evaluation submitting, limitless accountancy assist, HMRC registration, devoted shopper administration |
Learn extra
Finest enterprise financial institution accounts for sole merchants
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