The 9 best self-employed accounting software for 2025

QuickBooks is a cloud-based software and was one of the earliest providers of accounting software. If you’re a sole trader or just starting out, the cheapest plan lets you prepare for Self Assessment and send invoices.

If your business grows, you can gain more features with the more expensive plans – such as VAT deadline reminders and the option to submit your VAT to HMRC.

The platform is easily customisable and comes with an introductory guide to get you started.

FreeAgent, a cloud accounting software, is targeted at freelancers and small businesses – so it focuses on daily admin tasks like invoicing, time tracking, and expense management.

Its mobile phone app means you can do your bookkeeping on the go – including uploading pictures of your receipts, so you never miss an expense.

There are also optional add-ons you can buy, such as linking to your Amazon account if you sell on the platform.

You can get FreeAgent for free if you bank with NatWest, Mettle, Royal Bank of Scotland, or Ulster Bank. Learn more about switching business bank accounts in our guide.

Xero is another big player in cloud accounting software. Xero can help with invoicing, inventory, payroll, and expense claims.

As well as that, it can import your banking, credit card, and PayPal data – and there’s an app that works on both iPhone and Android. Certain packages give you the ability to submit VAT to HMRC for Making Tax Digital.

You can also choose to add more users to your plan as your business grows.

You can integrate Zoho Books with lots of apps from Zoho’s own suite, as well as third-party apps. It can help you issue invoices, sort expenses, and track inventory. Zoho Books is part of an overall suite of cloud-based software – other apps include Zoho Invoice and Zoho Expense, although there isn’t a payroll feature yet for the UK.

Zoho Books can also connect to your bank account for real-time updates on cash flow.

According to the government website, it’s currently in development to become MTD-compatible.

Benefits of cloud-based FreshBooks include the user-friendly interface and lack of jargon. It’s designed for freelancers and small businesses with basic accounting needs, so it focuses on things like invoicing and expense tracking. It integrates with apps like PayPal and Zendesk.

There’s a free trial available so you can try before you buy. FreshBooks says its packages have everything you need to stay compliant with Making Tax Digital, so you can connect it directly to your MTD profile and submit your tax return straight to HMRC.

Sage is a big enterprise software provider, but Sage Business Cloud Accounting is its cloud accounting software offering for small businesses. There’s also a free trial available to try to see if it’s the right software for you.

Sage can help you with everything you’d expect – like invoicing, cash flow, and payroll. And if your business grows, you can even purchase other Sage software such as Sage HR or Payroll.

If you’re a sole trader or are just starting out on your business journey, you can also use the free version of their platform, Sage Accounting Individual Free.

This lets you  manage your income and expenses, manually record receipts, and get an income tax summary. It even has its own free mobile app. But please note that the free version isn’t compatible with MTD.

Crunch is a big name in the online accounting software industry. While it’s mostly known for its paid version, there’s a free version available which includes:

• invoicing
• bookkeeping and expenses
• bank account integration

If you want to use the platform for your Self Assessment, including Making Tax Digital, you’ll need to upgrade to the paid version.

If you’re looking for a free and simple accounting software for your small business, QuickFile could be the answer. You can file your tax returns directly with HMRC and gain insights into your business through reporting.

GoSimpleTax’s solution for MTD for Income Tax is Coconut. It suits non-VAT registered sole traders and landlords with simple tax requirements.

They offer an app where you can easily follow invoices, track your expenses, and complete your tax return. And it’s FCA authorised, so you can feel secure using the app.