“Which accounting software should I use?” is one of the most common questions we are asked at Accounting Clarkes, especially since the introduction of Making Tax Digital for Income Tax (MTD) in April 2026.
For many sole traders and landlords, MTD has meant moving away from spreadsheets that have served them perfectly well for years. That is not a small ask. Changing the way you manage your finances feels significant, and the last thing you want is to invest time getting to grips with a new system only to realise it is not the right one for you.
If that hesitation sounds familiar, this blog is for you. There is no single right answer when it comes to accounting software, and with a little guidance, finding the right fit is more straightforward than it might seem.
What cloud accounting software provides for your business
The use of cloud accounting software is becoming mandatory under MTD. Sole traders and landlords with profits over £50,000 are now required to keep digital records and submit quarterly updates to HMRC using compatible software. But the benefits go well beyond compliance. Good accounting software gives you a real-time view of your income and expenses, simplifies your invoicing, and makes it far easier to understand the financial health of your business at any given moment – something we wish all business owners checked more frequently.
The right software will save you time, reduce the risk of manual data entry errors and give you the kind of clarity that helps you make better business decisions.
Three popular options to consider
There are many MTD-compatible software providers to choose from. Some are industry-specific, such as Hammock for landlords (we’ll be sharing more about this software in a separate blog). We can’t highlight them all, so here are three of the most widely used:
Xero is one of the most popular choices among small business owners and sole traders. It is well established, has a clean and user-friendly interface, and integrates with a wide range of other business tools and apps. Many of our clients use Xero, and it is easy to see why.
FreeAgent is particularly worth considering if you bank with NatWest, as it is available free of charge to NatWest business banking customers. It is intuitive and well-suited to freelancers and sole traders, making it a natural starting point for many.
QuickBooks is another well-regarded option with a strong track record among small businesses. It offers a broad range of features and is a solid choice for those who want flexibility as their business grows.
Tiered pricing: make sure you are on the right plan
All three providers offer tiered pricing plans, and it is worth taking the time to understand what each tier includes before you commit. You want to make sure you are not paying for functionality you will never use, but equally that you are not missing features that would genuinely make your life easier.
It is also worth knowing that most providers offer introductory discounts or trial periods. Shopping around and taking advantage of these offers before committing to a plan is a sensible approach.
This is a personal choice as much as a practical one
Here is something that does not always get mentioned in software comparisons: the best accounting software for your business is the one you will actually use.
These are tools you will be logging into regularly, week in and week out. The interface needs to feel intuitive to you. The layout needs to make sense to you. If you find yourself avoiding it because it feels clunky or confusing, it is not the right fit, regardless of how many features it offers.
We always encourage business owners to take advantage of free trials and to spend a little time with each platform before making a decision. Functionality and price matter, but so does your gut feeling when you sit down to use it.
Not sure where to start?
At Accounting Clarkes, we do not push one software provider over another. Our clients use a range of platforms and we have extensive experience working across all of them. What we care about is helping you find the right solution for your business.
If you would like a conversation about which software might suit you best, or support getting set up ahead of your MTD obligations, we would be happy to help. Call 01252 612484 or email gillian@accountingclarkes.co.uk to book a discovery call.
