Choosing the Right Accounting Software for Your Business

Choosing accounting software is a bit like choosing the right tool for the job; they will all do it, but some will make your life easier depending on how your business works. We would like to provide you with an honest, non-nonsense, balanced look at the pros, cons, and some considerations before choosing a system or switching from one to another.

Xero

Pros:

• Very user-friendly, even for business owners who do not love numbers.
• Strong bank feeds and simple bank reconciliation.
• Excellent for growing businesses and teams.
• Works well with construction apps like Dext, Apron, Float, Syft, etc.

Cons:

• Reporting is good, but not as flexible as some people want without add-ons.
• The price has increased over the years.
• Some features (like project tracking) need polishing.
• Xero is best for businesses planning to grow and that want clean bookkeeping and AI or add-on tools.

QuickBooks Online (QBO)

Pros:

• Strong reporting and customisation.
• Stock management is better than most entry-level systems.
• Often cheaper on introductory plans.

Cons:

• The interface is more complex, and some find it less intuitive.
• Bank feeds can be temperamental.
• Limited integrations compared to Xero.

QuickBooks Online is best for businesses that need detailed reporting or stock-heavy trades.

Sage Business Cloud Accounting

Pros:

• Familiar name with strong UK compliance.
• Good for basic bookkeeping and simple businesses.
• Often preferred by people moving from the old desktop Sage.

Cons:

• Not as modern or streamlined as Xero/QBO.
• Add-ons and integrations are more limited.
• Can feel slow or clunky for busy, fast-moving businesses.

Sage Business Cloud Accounting is best for very small businesses or those already used to Sage.

FreeAgent

Pros:

• Included free with many NatWest/Mettle accounts.
• Very simple interface — great for sole traders.
• Good, automated reminders and basic project tools.

Cons:

• Limited reporting.
• Not ideal for growing teams or VAT complexity.
• Not suitable once the business gets bigger.

FreeAgent is best for sole traders or small limited companies with simple needs.

Things to consider before choosing or switching software

When selecting new software, think about who will be using it most and how it will fit into your day-to-day operations. Consider whether you need features like detailed job costing or stock management, and whether the system can grow with your business over the next few years. It is also important to check how it integrates with the tools you already use, such as banking, payroll, or invoicing apps. Decide whether you need something simple to keep things straightforward or a more powerful system capable of handling complex tasks and be realistic about the time and training required to get everyone up to speed.

Switching software more than once can quickly become more hassle than it is worth, so aim for a solution that will support your business for the next three to five years. Choosing the right system now will save time, reduce stress, and help your business run more smoothly in the long term.