5 Best Accounting Software for Sole Traders

There are a lot of things to do when you’re a sole trader in the UK, and having a foundation in Accounting Software is just as essential in the case of sole traders as it is for more prominent companies. If you’re a sole trader, you’re not just required to offer services within your area that you are skilled in, but manage marketing and your accounts for financials, such as Accounting Software for expenses and calculating the income. There is good news: UK sole trader software for accounting can assist you in keeping track of your finances.

The top sole trader accounting applications will allow you to keep precise data, which makes it simpler to file your Self-Assessment tax return to HMRC every year. This article will explain what to seek out in the top software for sole traders in the field of Accounting Software. We also present our selection of the leading six software for sole traders.

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What are the reasons for choosing sole trader software for accounting?

If you’re a sole trader, there isn’t enough time in the day. The manual entry of every sole trader’s accounting and bookkeeping details into spreadsheets can take hours every week, mainly when you handle a large number of transactions. Accounting software for sole traders is specifically designed to help save both time and cash by recording expenses as well as creating invoices in addition to reconciling accounts with banks.

Here are some benefits of the most efficient accounting software designed for sole traders:

  • It stores all of your essential accounting for sole trader information in one location and ensures that no receipts go out of your hands.
  • It will automatically track expenses and reduce the tax burden.
  • It decreases the risk of human error.
  • It aids in forecasting the flow of cash.
  • It ensures that you are on the right side of tax on sole trader obligations.

Accounting Software concerns to sole traders

Any accounting software for sole traders can be used; however, take note of any particular tax requirements. One of the significant benefits of being registered with HMRC as a sole trader is that you don’t have to be concerned about filling in annual financial statements or filing corporate tax returns. Registration is completely free, and you don’t have to adhere to the same regulations as a limited company. This reduces the paperwork.

However, sole traders must meet these obligations

  • Keep accurate records of all invoices and expenditures
  • Submit Self-Assessment tax returns

With the top single trader software available, you’ll hit the goals and remain at the forefront of tax compliance concerns.

The best Accounting Software For sole trader

The self-employed have a lot of options when it comes to selecting one of the accounting programs for sole traders. Here are our six best choices:

1.   Xero

Xero is a multi-purpose, cloud-based accounting program that was launched in the year 2006. It’s packed with options for small firms, such as sole traders. Although there are many plans to pick from, the Starter Plan at just £12 per month is appropriate for the majority of sole traders. It includes everything you need to keep your accounts current to date and to file tax returns. One of the potential drawbacks that come with the Starter Plan is the 20 invoices per month limitation, meaning you’ll need to keep a watch on your workload should you decide to upgrade. There are other advantages but, for example:

  • Access from any location
  • mobile flexibility
  • multiple payments processors
  • Inventory tracking
  • automatic report generation 

2.   Sage

Sage Business Cloud Accounting is an ideal choice for people who need a background in accounting. You can set it up in a matter of minutes, and should you need help, Sage has 24/7 online and telephone support. Similar to Xero and Xero, the Basic Accounting Start Plan will suit the needs of a lot of sole traders for just £12 per month. However, the limitations could be a problem for those who have higher workloads. It also includes tools to calculate your VAT returns in the event that they are you have to. Other benefits include:

  • Create and create invoices and
  • reconcile bank accounts
  • Track payments
  • VAT submission 

3.   Kash Flow

Kash Flow is designed to make the accounting process as straightforward as it can be for freelancers and sole traders. The dashboard is user-friendly, provides information on your financial position, and is compatible with many apps, including major ecommerce platforms such as Amazon and Shopify. It’s also great for scaling to accommodate your company’s expansion. However, you’ll eventually require an upgrade to the Starter plan, which costs £9 per month. This will only allow you to send ten invoices per month. If you’re still not convinced, give it a go at no cost. The benefits include:

  • Easy to install
  • Work from any location
  • Automatic VAT updates automatically
  • Tax assistance


With a starter plan of £19 per month explicitly created for sole traders, FreeAgent is packed with all the tools you require to ensure your books are balanced. The basic features include a selection of eight professional invoice templates as well as time tracking sheets to assist with invoicing and automated expense tracking directly through a live feed of your bank. It is also possible to utilise the application to fill in and file your Self-Assessment tax return.

  • Invoicing
  • cost tracking
  • self-assessment
  • Profit share calculation 


 QuickBooks is among the most popular software for business accounting. It’s as applicable to sole traders as it is to larger businesses. It’s simple to use at any level, and it comes with a Simple Start Plan for £12 per month, which provides you with everything you require to monitor the flow of cash and ensure that your taxes are organised. It also allows you to monitor the invoices that are sent while also chasing late payments in order to increase the flow of cash.

  • Tracking of expenses and income
  • Join multiple accounts at one time
  • invoice tracking
  • Tax assistance

6. Zoho-Books

Zoho Books is another one of the top accounting software designed for sole traders. It is backed by a generous 14-day trial period of the program. It has a variety of reporting options, as well as the capability to monitor the total cost of expenses and keep track of invoices, so you are aware of what your cash flow is and how it is. The basic plan for paid fees is only PS10 per month, and it is billed either each month or annually. Other benefits include:

  • Management of clients
  • recurring invoices
  • payment link generator
  • Reminders for payments
  • integrated client portal

How to select the most effective sole trading software for accounting

There are plenty of options. So, how do you pick the most effective accountant software that is suitable for sole traders? Take into consideration the platform’s user-friendliness and your personal experience using accounting techniques, along with additional reviews like:

  • Features that meet your business’s requirements
  • Budgetary constraints
  • Support is available
  • mobile use and scalability
  • Automation to reduce time and increase accuracy

If you’re beginning your journey, You may want to select a platform like Sage that offers a wide range of customer service. Invoices are an essential aspect of running a small company. Sole traders can speed up the process of paying customers by combining accounting software and Pull-based payments such as GoCardless. They automatically collect payments from customers at the time they are due. You can access Account Ease directly via the self-service dashboard. We integrate seamlessly with all six accounting platforms above, in addition to additional partners.

We can help

One of the most crucial aspects of running a small-scale business as a self-employed or freelance person is the collection of payments. Account Ease allows you to be paid with pull-based methods such as Direct Debit. This allows sole traders and freelancers to receive their money automatically at the time they prefer. If you require quick payment for additional products or services, Instant Bank Pay allows you to take one-time, same-day payments through Pay-link.

Account Ease integrates with all of the apps that are listed here, along with a number of essential accountants, which allows users to reconcile and raise invoices on a regular basis. With automated payments and total management of the entire process, feel less stress and save time with financial administration.

Account Ease can help you automate the collection of payments, reducing the amount of administration that your staff has to handle when it comes to dealing with invoices. Learn the ways Account Ease can assist you by assisting with ad-hoc payments as well as periodic transactions.

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