Choosing the right accounting software is one of the most important decisions for any small business. The right solution can save you time, reduce stress, and ensure compliance with the latest Making Tax Digital (MTD) regulations. But with so many options available, how do you decide which one is right for your business?
At Kingston Burrowes, we help small businesses across a variety of sectors find the perfect tools for their accounting needs. In this blog, we’ll explore the best accounting software options for 2025, their compatibility with MTD, and what to consider when making your choice.
Why Accounting Software Matters
Gone are the days of endless spreadsheets and piles of paperwork. Accounting software makes managing your finances easier, faster, and more accurate. It can help you:
- Track income and expenses
- Generate invoices
- Manage payroll
- Stay compliant with MTD
- Produce accurate reports for better decision-making
With the latest advancements in technology, many software solutions also integrate with your bank accounts and automate tasks like VAT submissions.
Top Accounting Software for 2025
Xero continues to be a popular choice for small businesses. Its user-friendly interface and extensive features make it a versatile option.
- Key features: Bank reconciliation, invoicing, inventory management, and multi-currency support.
- MTD compliance: Fully compatible with MTD, making VAT submissions seamless.
- Best for: Small to medium-sized businesses looking for scalability.
QuickBooks is a well-established name in accounting software, known for its comprehensive tools and cloud-based flexibility.
- Key features: Expense tracking, custom invoicing, and detailed financial reports.
- MTD compliance: Offers MTD-compatible VAT submission tools.
- Best for: Businesses that need robust reporting and analytics.
3. Sage Business Cloud Accounting
Sage is a trusted provider of accounting solutions with a strong focus on compliance and accuracy.
- Key features: Cash flow forecasting, invoicing, and real-time bank feeds.
- MTD compliance: Built with MTD in mind, making it ideal for VAT-registered businesses.
- Best for: Businesses that value detailed reporting and easy-to-use features.
FreeAgent is tailored to freelancers, contractors, and small business owners, offering simplicity and affordability.
- Key features: Invoice tracking, expense management, and real-time project profitability.
- MTD compliance: Fully compliant with MTD for VAT submissions.
- Best for: Sole traders and small businesses needing straightforward tools.
Zoho Books offers a cost-effective solution with a range of features for small businesses.
- Key features: Time tracking, recurring invoices, and inventory management.
- MTD compliance: Fully compliant with MTD requirements.
- Best for: Budget-conscious businesses looking for value.
How to Choose the Right Software
With so many options available, it’s important to consider your business’s unique needs before making a decision. Here are some key factors to weigh up:
1. MTD Compatibility
Ensure the software you choose is compatible with Making Tax Digital. With MTD for Income Tax Self Assessment (ITSA) rolling out, compliance is non-negotiable for VAT-registered and sole trader businesses alike.
2. Ease of Use
Look for a platform that’s intuitive and easy to navigate, especially if you’re not familiar with accounting software.
3. Scalability
If you plan to grow your business, choose software that can grow with you by offering advanced features or additional integrations.
4. Cost
Consider your budget and what you’ll be getting for your money. Many providers offer tiered pricing, so you can start small and upgrade as needed.
5. Support and Training
Check whether the provider offers customer support, tutorials, or training to help you get the most out of the software.
How Kingston Burrowes Can Help
At Kingston Burrowes, we understand that choosing accounting software can feel overwhelming. That’s why we’re here to guide you through the process. From assessing your business’s needs to implementing the software and ensuring MTD compliance, we’ll make sure you have the right tools to manage your finances effectively.
Whether you’re a sole trader, a start-up, or an established business, we can help you find the software that’s the perfect fit for your needs.
Your Next Step
Choosing the right accounting software is an investment in your business’s future. Get in touch with our expert team today to find out how we can support you in making the best decision.
