What’s the best accounting software to use in 2020?

Good accounting software is an important part of running a business, regardless of its size, but with such a broad choice of software packages available in 2020 how do you decide which one is best?

Firstly, you should consider what you need from the software as this can vary between businesses. Maybe cost will drive your choice, strong customer support, or perhaps you need access for your accountant to double check that everything is in order?

To help you make the decision and move forward with confidence, here’s a brief rundown of some of the most popular pieces of accounting software in 2020.

Xero

Xero has been in existence since 2006, and is aimed at small and medium sized enterprises (SMEs). This cloud-based software can be used across a variety of devices, including your smartphone and tablet.

Features and benefits

• Use Xero on the go with mobile access
• Saves time by automatically updating your bank transactions
• Wide integration with other systems, such as payment, workflow, and payroll apps

Pricing

Starter: £5 per month plus VAT (£10 per month plus VAT after three months)

Standard: £12 per month plus VAT (£24 per month plus VAT after three months)

Premium: £15 per month plus VAT (£30 per month plus VAT after three months)¹

30-day free trial available

Sage 50 cloud accounts

A familiar name in business accounting, Sage now offers a cloud-based software package called Sage 50c. It also includes Microsoft Office 365. You can import data from Excel if you’ve previously used spreadsheets for your accounts, and can practice using the software before inputting your own figures so you get to know how it works.

Features and benefits

• Collaborate with your accountant to make sure your figures are correct
• Cash flow control keeps you on track with everyday expenses and longer-term plans
• Keep an eye on stock levels with automatic updating of inventory when you post your invoices

Pricing

Essentials: £20 per month plus VAT

Standard: £60 per month plus VAT

Professional: £125 per month plus VAT²

30-day free trial available

FreeAgent

FreeAgent accounting software was voted the UK’s number one accounting software for small businesses in 2018.

Features and benefits

• Work online with your accountant so you avoid fines and penalties
• Take a photo of your receipts and expenses on your smartphone, and upload to the software – no more worries about losing a receipt
• Complete your self-assessment tax return via the app, and file directly with HMRC

Pricing

Sole trader: £9.50 per month plus VAT (£19 per month plus VAT after six months)

Partnership/LLP: £12 per month plus VAT (£24 per month plus VAT after six months)

Limited Company: £14.50 per month plus VAT (£29 per month plus VAT after six months)³

KashFlow

KashFlow accounting software has been around since 2005, and is dedicated to helping small businesses deal with their financial and tax obligations.

Features and benefits

• Customers are automatically emailed when an invoice is overdue
• Helps you collect payments and reduce bad debts
• Track your marketing spend and return on investment to make every pound count

Pricing

Starter: £8 per month plus VAT

Business: £15 per month plus VAT

Business and Payroll: £21 per month plus VAT

14-day free trial available

If you’re looking for professional accountancy help, Handpicked Accountants can provide reliable referrals for accountants in your area. We have longstanding working relationships with accountants nationwide, and offer our recommendations based on in-depth knowledge of their qualifications and standards of service. Please contact one of our team to find out more about how we can help.