Small business accounting software built for the UK
Take control of your finances with Xero's accounting software for small business. Stay MTD-compliant, submit VAT returns to HMRC, and automate your bookkeeping – all from one platform. Xero is small business cloud accounting software that grows with you – 91% of customers agree it's easy to use.
Why UK small businesses choose Xero's small business accounting software
Xero is the all-in-one platform designed for UK businesses – automated bookkeeping, tax compliance, and invoicing in one intuitive package.
Simple enough for anyone, powerful enough for growth
Bookkeeping software for small businesses with automated bank feeds and fast, simple reconciliation.
Stay MTD-compliant and in control of your VAT
Submit VAT returns to HMRC and manage CIS deductions – all in Xero. 90% of UK customers agree Xero keeps them compliant.
Get invoices paid up to twice as fast
Invoice clients with Stripe, GoCardless, Klarna, Pay by Bank, and Tap to Pay.
Cut hours off your bookkeeping
Xero connects to your UK bank via Open Banking and pulls in transactions automatically. JAX – Xero's AI assistant – categorises and matches the entries it’s sure of (beta). Xero’s reconciliation process is designed to be fast and simple, with suggested matches you can approve with a single click.
- 7 in 10 small businesses say they're more confident in their books with Xero. Up-to-date records give you a clear view of your cash flow so you can plan ahead with confidence.
- 4 in 5 Xero customers save 6 hours monthly by eliminating manual data entry.
MTD, VAT, and CIS – all sorted in Xero
Submit VAT returns to HMRC directly from Xero and keep digital records automatically. Xero’s MTD for Income Tax (beta) allows quarterly updates and a final declaration, subject to registration and eligibility. Xero is HMRC-recognised software for VAT and MTD for Income Tax.
- MTD requirements vary by business structure. Xero supports UK tax compliance with VAT lodged with HMRC, CIS scheme obligations, and MTD for Income Tax filing.
- 90% of UK customers agree Xero helps them stay compliant (Xero survey of 858 SBs in the UK, May 2024)
Get invoices paid up to twice as fast
Create professional invoices that give customers many flexible ways to pay. Then set automated reminders for outstanding invoices so Xero can help you follow up on unpaid invoices.
- Create and send invoices from the Xero Accounting app for mobile – useful for businesses that need to invoice on the go.
- Xero customers report spending 50% less time chasing payments.
Know your numbers –whenever you need to
All your accounting data in one set of easy-to-read reports. Track profit and loss, balance sheet, and cash flow with Xero’s reporting tools to keep on top of your business finances.
- 7 in 10 small businesses say they're more confident in their books with Xero. Always-current data means fewer surprises at year end.
- 88% of customers agree Xero helps improve financial visibility.
All plans to suit your business
Ignite
for the first 6 months
Then £16 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions (optional)
- Auto-reconcile transactions (optional)
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
Grow
for the first 6 months
Then £37 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
Comprehensive
for the first 6 months
Then £50 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
Ultimate
for the first 6 months
Then £65 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
Unlimited users – your whole team no extra cost
Xero gives you unlimited users on every plan –unlike competitors that charge per seat. So invite your accountant or bookkeeper to work alongside you in real time.
- Get round the clock peace of mind with support from Xero experts, and personalised 1:1 set-up assistance to get up and running fast.
- More than 4.6 million subscribers trust Xero for their accounting software (Xero SB Storybook V2)
Over 1000 apps to extend and customise Xero
Connect more than 1,000 certified apps to Xero. UK integrations include Xero Payroll for PAYE and RTI, Crezco for bill payments in 32+ currencies, and GoCardless for direct debit. And Build custom integrations, too!
- Xero is the accounting and payroll software for small business. Get PAYE, RTI submissions, and auto-enrolment, all managed from one place.
- A 26% average productivity boost with Xero app integrations (Xero survey, 266 SBs globally, Oct 2025)
FAQs on small business accounting software for the UK
Small business accounting software automates the financial tasks that spreadsheets handle manually –bank reconciliation, invoicing, expense tracking, and tax compliance.
Unlike spreadsheets, it connects directly to your bank, updates automatically, and generates reports your accountant can use. Xero also supports multi-user access: you and your accountant can work together in your books.
This all adds up to less admin and fewer errors.
Small business accounting software automates the financial tasks that spreadsheets handle manually –bank reconciliation, invoicing, expense tracking, and tax compliance.
Unlike spreadsheets, it connects directly to your bank, updates automatically, and generates reports your accountant can use. Xero also supports multi-user access: you and your accountant can work together in your books.
This all adds up to less admin and fewer errors.
For many UK small businesses, accounting software can make record-keeping and VAT tasks easier.
Xero accounting software handles these requirements automatically, reducing the chance of errors, and giving you real-time visibility of your cash flow and financial position. 4 in 5 Xero customers say they save 6 hours monthly by eliminating manual data entry.
If you also employ staff, small business accounting software with payroll, like Xero, handles PAYE and RTI as well.
For many UK small businesses, accounting software can make record-keeping and VAT tasks easier.
Xero accounting software handles these requirements automatically, reducing the chance of errors, and giving you real-time visibility of your cash flow and financial position. 4 in 5 Xero customers say they save 6 hours monthly by eliminating manual data entry.
If you also employ staff, small business accounting software with payroll, like Xero, handles PAYE and RTI as well.
It depends on your business – but Xero consistently ranks among the top options for UK small businesses. Xero is the most loved small business accounting software in the UK:
- 91% of customers agree it's easy to use
- 90% of UK customers agree Xero helps them stay compliant.
Xero also has unlimited users, over 1000 integrations, and supports MTD, so it's a strong fit for most business types.
You can also compare Xero against alternatives like QuickBooks, Sage, and FreshBooks to find the right fit.
It depends on your business – but Xero consistently ranks among the top options for UK small businesses. Xero is the most loved small business accounting software in the UK:
- 91% of customers agree it's easy to use
- 90% of UK customers agree Xero helps them stay compliant.
Xero also has unlimited users, over 1000 integrations, and supports MTD, so it's a strong fit for most business types.
You can also compare Xero against alternatives like QuickBooks, Sage, and FreshBooks to find the right fit.
Xero’s business plans for small businesses come in three options: Early, Growing, and Established. If you’re new to Xero, you can start a 30-day free trial.
Xero includes unlimited general users at no extra cost, unlike competitors who charge per seat (which can greatly increase the cost as your team grows).
See the Xero pricing page to find out more.
Xero’s business plans for small businesses come in three options: Early, Growing, and Established. If you’re new to Xero, you can start a 30-day free trial.
Xero includes unlimited general users at no extra cost, unlike competitors who charge per seat (which can greatly increase the cost as your team grows).
See the Xero pricing page to find out more.
Yes. Xero is HMRC-recognised software for MTD for VAT. It maintains your digital records automatically and lets you submit VAT returns directly to HMRC from within the software. MTD for Income Tax is also available (in beta) –allowing you to send quarterly updates and a final declaration –subject to registration and eligibility.
For the latest requirements, visit HMRC's Making Tax Digital page. For setup guidance, go to Xero's VAT returns page.
Yes. Xero is HMRC-recognised software for MTD for VAT. It maintains your digital records automatically and lets you submit VAT returns directly to HMRC from within the software. MTD for Income Tax is also available (in beta) –allowing you to send quarterly updates and a final declaration –subject to registration and eligibility.
For the latest requirements, visit HMRC's Making Tax Digital page. For setup guidance, go to Xero's VAT returns page.
Yes. Xero connects to your UK bank via Open Banking, so it pulls transactions in automatically. JAX – Xero’s AI assistant – can automatically categorise and match transactions when it’s highly confident (beta), helping you get an up-to-date view of your finances faster while staying in control.
And in Xero, you can also set bank rules to speedily handle recurring transactions.
Yes. Xero connects to your UK bank via Open Banking, so it pulls transactions in automatically. JAX – Xero’s AI assistant – can automatically categorise and match transactions when it’s highly confident (beta), helping you get an up-to-date view of your finances faster while staying in control.
And in Xero, you can also set bank rules to speedily handle recurring transactions.
You can access cloud-based accounting software for small businesses from any device. It also stores your business information in the cloud, so it’s always backed up.
Cloud-based accounting software lets you access your data from anywhere, collaborate in real time, and stay on the latest version with automatic backups and updates.
Xero is available across your devices, so you can share and access your data from anywhere. For UK small businesses, that means:
- your accountant can work in your books at the same time as you
- your data is backed up automatically
- you're always on the latest version of the software
You can access cloud-based accounting software for small businesses from any device. It also stores your business information in the cloud, so it’s always backed up.
Cloud-based accounting software lets you access your data from anywhere, collaborate in real time, and stay on the latest version with automatic backups and updates.
Xero is available across your devices, so you can share and access your data from anywhere. For UK small businesses, that means:
- your accountant can work in your books at the same time as you
- your data is backed up automatically
- you're always on the latest version of the software
Yes – Xero is the leading software for enabling collaboration with clients in the UK. Just invite your accountant or bookkeeper (at no extra cost) into your Xero organisation, and use Xero’s customisable permissions to give them access to exactly what they need. You can work with them in real time.
Find a certified professional through the Xero Advisor Directory
Yes – Xero is the leading software for enabling collaboration with clients in the UK. Just invite your accountant or bookkeeper (at no extra cost) into your Xero organisation, and use Xero’s customisable permissions to give them access to exactly what they need. You can work with them in real time.
Find a certified professional through the Xero Advisor Directory
91% of customers agree Xero is easy to use.
To get you started quickly, Xero offers personalised 1:1 setup assistance and 24/7 support. You don’t need an accounting background – the user-friendly interface means you can use it confidently from Day 1.
91% of customers agree Xero is easy to use.
To get you started quickly, Xero offers personalised 1:1 setup assistance and 24/7 support. You don’t need an accounting background – the user-friendly interface means you can use it confidently from Day 1.
It’s quick and easy to set up your business in Xero. You can invite users to your organisation, customise invoice templates, and get expert help connecting accounts so you can start using Xero fast. Xero supports importing data from spreadsheets or moving from another accounting system. If you need more help with your move, you can use an assisted conversion service included in your Xero subscription in the UK via Movemybooks.
Xero Central has step-by-step migration guidance, and the Xero Advisor Directory can connect you with a professional who specialises in switching businesses to Xero.
It’s quick and easy to set up your business in Xero. You can invite users to your organisation, customise invoice templates, and get expert help connecting accounts so you can start using Xero fast. Xero supports importing data from spreadsheets or moving from another accounting system. If you need more help with your move, you can use an assisted conversion service included in your Xero subscription in the UK via Movemybooks.
Xero Central has step-by-step migration guidance, and the Xero Advisor Directory can connect you with a professional who specialises in switching businesses to Xero.
Xero for your type of small business
Whether you run a service business, an online shop, or a construction firm, Xero has the features and integrations that fit the way you work
Service businesses and professional services
Professional invoicing, project tracking, expense capture, and accountant collaboration – all in one place.
Retail and ecommerce sellers
Connect Shopify, track inventory, and offer online payments with Xero.
Contractors and construction businesses
Manage CIS obligations, track job profitability, and connect specialist construction apps with Xero.
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.
Explore useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
