Compare accounting software
We track the four products that dominate UK small-business shortlists and score them on the criteria that actually change decisions: automation, compliance, scalability and cost over time.
| Product | Score | Best for | From | |
|---|---|---|---|---|
| Xero | 9.0/10 | Growing small businesses that want a modern ledger with unlimited users | £16/mo (Early plan) | Read review |
| QuickBooks Online | 8.7/10 | Small businesses that want reporting depth and maximum accountant familiarity | £12/mo (Simple Start) | Read review |
| Sage Accounting | 8.1/10 | UK small businesses that want payroll-integrated accounting from an establishment brand | £15/mo (Start plan) | Read review |
| FreeAgent | 8.4/10 | UK freelancers, contractors and very small limited companies | £14.50/mo — free with eligible NatWest, RBS or Mettle accounts | Read review |
The shortlist, in one line each
Xero is the modern all-rounder with the strongest app ecosystem. QuickBooks Online offers the deepest reporting and the widest accountant familiarity. Sage is the UK establishment choice with payroll baked in. FreeAgent is purpose-built for freelancers and contractors — and can be free with the right bank account.
What separates the category
At entry level all four products invoice, reconcile banks and file MTD VAT. The meaningful differences are seat limits, payroll integration, reporting depth and how pricing scales as you add staff, entities and currencies. Those are the rows in the table below that deserve your attention.
Pricing reality check
Headline prices are entry tiers and vendors discount aggressively in year one. Model the plan you will actually need in 18 months — including payroll, extra seats and add-ons — before committing to a migration.
Head-to-head comparisons
Xero vs QuickBooks Online
Both are excellent — Xero wins on scalability and ecosystem, QuickBooks on reporting and entry price.
Sage Accounting vs FreeAgent
Different tools for different stages: FreeAgent for one-person businesses, Sage once payroll and growth enter the picture.
Xero vs Sage Accounting
Xero on product merit; Sage on payroll depth and incumbent accountant relationships.
QuickBooks Online vs FreeAgent
A growth platform versus a specialist: match the tool to the business you have and the one you expect in two years.