What is the best accounting software for a small business?

The honest answer? There isn’t one single “best” accounting software for every small business. The right choice depends on your size, your sector, and how you like to work.

For most UK small businesses, we typically recommend cloud-based solutions like Xero or QuickBooks because they’re reliable, user-friendly, and compliant with Making Tax Digital (MTD).

However, the “right” software is always the one that fits your business – not just the most popular option. That’s where Larking Gowen’s expert advice can make a real difference.

Why going digital matters

HMRC’s Making Tax Digital rules mean more businesses must keep digital records and submit returns using compatible software. If you’re still relying on spreadsheets or paper, now’s the time to review your setup.

Going digital isn’t just about compliance. It gives you real-time insight into your numbers, helps you stay organised, and can save hours of admin each month.

When is the right time to switch?

If you’ve been putting this off, you’re not alone. A lot of businesses wait until they have to change –but in reality, earlier is often easier.

Switching during a quieter period or at the start of a new month or quarter can make the process more straightforward. It also gives you time to get comfortable with the software before key deadlines.

With MTD continuing to expand, moving to digital is becoming less of a “future plan” and more of a “now” decision. Getting ahead of it can help you avoid unnecessary pressure later on.

What to look for in accounting software

When choosing software, focus on what will make your life easier day to day:

• Ease of use – simple dashboards and clear reports
• Automation – bank feeds, invoice reminders, and expense tracking
• Integration – links with apps like payroll, POS systems, or stock tools
• Scalability – something that grows with your business

Common concerns (and why they’re easier than you think)

We often hear that switching feels daunting. That’s completely understandable. In reality, modern software is designed for non-accountants. With the right setup and support, most businesses are up and running quickly.

Another concern is cost. While there’s a monthly subscription, the time saved and improved accuracy usually outweigh this.

Our approach

We don’t just recommend software – we work closely with you to understand how your business operates, onboard you onto the right software that fits your needs, and support you through the transition. Our aim is to make digital feel straightforward, not overwhelming.

Whether you’re switching software, moving away from spreadsheets, or reviewing your current setup, having the right advice at the outset can save time and cost in the long run.

Need help?

If you’re unsure where to start or thinking about switching software, we’re here to help. Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk

Scott Smerdon