Author
Mark C
- 1st January 2026
The Best Accounting Software for Self Employed – 2026 Guide
If you’re self employed in the UK, managing your finances can feel like a full-time job on top of running your business. From tracking expenses and sending invoices to preparing for tax returns, the right accounting software for self employed professionals can save hours of admin, cut down on errors, and keep you fully compliant with HMRC — all while giving you a clear picture of your cash flow. But with so many accounting and bookkeeping tools available, how do you decide which one truly fits your needs?
In this guide, we’ll walk you through the leading accounting software for self employed individuals. You’ll discover affordable and easy-to-use platforms, compare cheap accounting software options for self employed professionals, and explore the best bookkeeping software to keep your finances organised. We’ll also cover tools designed to simplify tax for the self employed so you can confidently answer the question:
“Which accounting software is best for my business?”
Whether you’re freelancing, contracting, or running a side hustle, this guide will help you find the software that makes financial management easier, faster, and more cost-effective.
See Our Best Accounting Software Deals for Self Employed People Below
QuickBooks
Accounting Software- Smart invoicing & expense tracking
- VAT & tax return tools
- Payroll & reporting options
- Connects with banks & apps
Xero
Accounting Software- Easy cloud-based bookkeeping
- Send invoices & track payments
- Bank reconciliation made simple
- Payroll & project tracking add-ons
Sage
Accounting Software- Trusted UK accounting software
- Tax & VAT submissions to HMRC
- Invoicing & cashflow tracking
- Multi-user and accountant access
Why Self Employed Workers Benefit from Accounting Software
If you’re self employed in the UK, managing your finances can quickly become overwhelming. From logging expenses to preparing tax returns, it’s easy to spend hours on admin that could be better used growing your business. Many people ask: do I need accounting software as self employed, or can I just use spreadsheets? The truth is that the best accounting software for self employed workers can save time, reduce errors, and keep you compliant with HMRC rules.
Stress Free Bookkeeping
The best bookkeeping software for self employed tracks income and expenses automatically. No more piles of receipts — everything is organised, accurate, and always up to date.
Better Financial Insights
With dashboards and reports, accounting software for self employed gives a clear picture of cash flow. Freelancers and contractors can see where money is coming from and plan with confidence.
Tax & HMRC Compliance
Many platforms also act as tax software for self employed, making MTD submissions simple. You’ll stay compliant, avoid penalties, and cut stress at tax time.
Save Time with Automation
From invoicing to bank reconciliation, the best accounting software for self employed automates repetitive admin — giving you more time for clients and growth.
Scalability & Flexibility
Whether you’re starting a side hustle or running a full-time business, you can choose cheap accounting software for self employed or feature-rich platforms with payroll and multi-user tools that grow with you.
Best Accounting Software for Self Employed
We’ve reviewed the leading accounting software for self employed in the UK. From cheap accounting software for self employed to advanced bookkeeping and tax software for self employed, this guide will help you pick the right solution.
The goal is simple: find the best accounting software for self employed that makes bookkeeping, tax, and cash flow management easier, faster, and more cost-effective.
Xero – Cloud Accounting for Self Employed
Best for: Self employed professionals who want easy-to-use accounting software with strong invoicing, cash flow tools, and HMRC compliance.
Current Offer: Get 90% off for 6 months — with prices starting from just £1.60/month (T&Cs apply).
Pricing: Plans start from £16 per month (before discount)
Key Features of Xero for Self Employed
Create and send invoices quickly, with automatic payment reminders Connect your bank for real-time reconciliation of income and expenses Submit VAT returns to HMRC with full Making Tax Digital (MTD) compliance Manage bills, receipts, and expenses all in one dashboard Add payroll or project tracking as your business grows Share access with your accountant to simplify year-end reporting
Ideal For:
Self employed individuals who want affordable, cloud-based accounting
Freelancers needing invoicing, expense tracking, and cash flow insights
Anyone searching for tax software for self employed that integrates with HMRC
Why Self Employed Workers Choose Xero:
Xero is widely recognised as one of the best bookkeeping software for self employed because it strikes the right balance between affordability and powerful features. It’s perfect for those starting out, offering everything needed to stay organised, reduce admin, and remain compliant with HMRC.
Exclusive Xero Offer:
Click here, sign up today and get 90% off your first 6 months across all Xero plans.
Read our full Xero Accounting Software Review >> here for more details!
QuickBooks – Flexible Accounting Software for Self Employed
Best for: Self employed workers and freelancers who want a trusted platform with strong tax tools and simple mobile access.
Current Offer: Get 90% off for 7 months across all QuickBooks plans (T&Cs apply).
Pricing: Plans start from £14 per month (before discount).
Key Features of QuickBooks for Self Employed
Track income and expenses automatically with bank feeds Create and send invoices directly from your phone Use built-in tax software for self employed to estimate and file returns Mileage tracking for contractors and mobile businesses Generate cash flow forecasts to plan ahead Integrates with hundreds of apps and banking partners
Ideal For:
Self employed professionals who need cheap accounting software for self employed without sacrificing features
Freelancers who want mobile-friendly bookkeeping and invoicing
Individuals looking for HMRC-recognised MTD-compliant solutions
Why Self Employed Workers Choose QuickBooks:
QuickBooks is a market leader and one of the best accounting software for self employed in the UK. It’s especially popular with contractors and mobile workers thanks to its mileage tracking and simple app interface. Add in the low entry price, and it’s a top choice for cost-conscious professionals.
Exclusive QuickBooks Offer:
Sign up today and get 90% off your first 7 months on all QuickBooks plans.
Read our full QuickBooks Accounting Software Review >> here for more details!
Sage – Established Accounting for Self Employed
Best for: Self employed workers who want a trusted name with advanced features and strong reporting.
Current Offer: Get 3 months free on Sage Accounting (T&Cs apply).
Pricing: Plans start from £14 per month (before discount).
Key Features of Sage for Self Employed
Automates invoicing, expenses, and bank reconciliation Submit VAT returns directly to HMRC (MTD-compliant) Access in-depth financial reports for cash flow and performance Multi-user access with accountant logins Payroll add-on for growing businesses Secure cloud access from anywhere
Ideal For:
Self employed individuals who want advanced reporting and forecasting
Freelancers who need a solution that scales as their business grows
Professionals seeking bookkeeping and tax software for self employed in one package
Why Self Employed Workers Choose Sage:
Sage has been trusted by UK businesses for decades. For the self employed, it offers a reliable all-in-one platform that covers everything from daily bookkeeping to tax submissions. While not the cheapest accounting software for self employed, its reputation and advanced tools make it a strong long-term investment.
Exclusive Sage Offer:
Sign up today and get 3 months free on Sage Accounting.
Read our full Sage Accounting Software Review >> here for more details!
ANNA + Taxes – Smart Accounting for Self Employed
Best for: Self employed professionals who want a modern app that combines accounting, taxes, and admin support.
Current Offer: Get a 30-day free trial of ANNA Money + Taxes.
Pricing: Plans start from £14.90 per month (before discount).
Key Features of ANNA + Taxes for Self Employed
Real-time expense tracking with instant notifications Submit VAT and tax returns directly to HMRC (MTD-ready) Automates bookkeeping with receipt capture and categorisation Invoicing tools with payment reminders 24/7 in-app support for accounting and admin questions Smart tax calculator built for the self employed
Ideal For:
Freelancers and contractors who want best bookkeeping software for self employed with tax support built in
Self employed individuals looking for affordable, app-based solutions
Those who ask “do I need accounting software as self employed?” and want a simple, all-in-one answer
Why Self Employed Workers Choose ANNA + Taxes:
ANNA stands out as both cheap accounting software for self employed and smart tax software for self employed. It’s designed specifically with small businesses and freelancers in mind, helping you manage admin, bookkeeping, and taxes in one intuitive app.
Exclusive ANNA Money + Taxes Offer:
Sign up today and get a 30-day free trial to test all features of ANNA Money + Taxes.
Why Should Self Employed Workers Use Accounting Software?
Handling your finances manually with spreadsheets or paper records can be time-consuming and stressful when you’re self employed. The best accounting software for self employed workers takes the pressure off by automating everyday tasks, improving accuracy, and helping you stay compliant with HMRC.
Here’s why it’s worth considering accounting software if you’re self employed:
✔️ Save time – Automate invoicing, expense tracking, and bank reconciliation so you can focus on clients and growing your business instead of admin.
✔️ Improve accuracy – Reduce mistakes with real-time bank feeds, automatic categorisation, and error detection.
✔️ Stay compliant – Many platforms are HMRC-recognised and Making Tax Digital (MTD) ready, so tax software for self employed makes filing VAT and Self Assessment returns much easier.
✔️ Gain insights – Dashboards and reports give you a clear picture of income, expenses, and cash flow so you can plan with confidence.
✔️ Scale easily – Whether you need payroll, multi-user access, or advanced features, the best bookkeeping software for self employed can grow with your business.
If you’ve ever asked yourself, do I need accounting software as self employed? the answer is yes if you want to save time, cut paperwork, and manage your money with confidence.
What is Accounting Software?
Accounting software is a digital tool that allows self employed individuals to manage their finances in one place — from generating invoices and recording expenses to reconciling bank transactions and submitting taxes.
Unlike manual spreadsheets, the best accounting software for self employed automates key tasks, saving hours of admin and giving you real-time visibility of your finances. These tools also integrate with your bank, provide detailed reports, and ensure you stay compliant with HMRC’s Making Tax Digital rules.
For the self employed, this means less stress when it comes to tax season and more time to focus on running your business. Whether you’re comparing cheap accounting software for self employed to keep costs low, or exploring advanced tax software for self employed with extra features, there’s a solution that will suit your needs.
Put simply, the best bookkeeping software for self employed helps you reduce errors, stay compliant, and gain insights that make managing your money simpler and more professional.
How Does Accounting Software Work for Self Employed?
Accounting software helps self employed workers manage their finances more efficiently by automating everyday tasks like invoicing, tracking expenses, and filing taxes. Instead of relying on spreadsheets, modern tools connect directly to your bank account and give you real-time insights into your cash flow.
Self employed individuals typically use accounting software for:
✔️ Creating and sending invoices to clients to get paid faster
✔️ Recording expenses and income, including mileage, receipts, and bills
✔️ Reconciling transactions with your bank to keep accounts accurate
✔️ Submitting Self Assessment and VAT returns with HMRC-compliant tax software for self employed
✔️ Generating reports to understand profits, forecast cash flow, and make better business decisions
The best accounting software for self employed often includes integrations for payroll, project tracking, and expense management, making it a complete financial hub. Whether you’re comparing cheap accounting software for self employed or exploring more advanced bookkeeping platforms, the right solution saves time, reduces errors, and gives you peace of mind at tax season.
Who is Accounting Software For?
Accounting software isn’t just for large businesses — it’s built for freelancers, contractors, and self employed workers who want to stay organised and avoid the stress of manual paperwork. By automating bookkeeping, the best accounting software for self employed makes invoicing, expenses, and tax submissions simple.
Accounting software is especially useful for:
Self employed professionals and freelancers who need help with invoicing, expense tracking, and Self Assessment tax returns
Contractors and gig workers who need cheap accounting software for self employed to keep costs low while staying compliant
Small business owners scaling up who want the best bookkeeping software for self employed with advanced features such as payroll or multi-user access
Whether you’re just starting out or already running a full-time business, the right accounting platform gives you the tools to stay compliant, keep your records accurate, and free up time to focus on growth.
Do I Need Accounting Software as Self Employed?
If you’re self employed in the UK, whether freelancing, contracting, or running a small business, you’ll almost certainly benefit from using accounting software. While it isn’t currently a legal requirement for everyone, HMRC’s Making Tax Digital (MTD) rules mean digital record-keeping is becoming more important every year.
You may need accounting software if:
✔️ You want to simplify bookkeeping and avoid manual data entry
✔️ You issue invoices regularly and need an easy way to track payments
✔️ You’re VAT-registered and must file returns with MTD-compliant tax software for self employed
✔️ You want real-time visibility of your income, expenses, and cash flow
✔️ You’d like to save time by automating expense tracking, reconciliation, and tax submissions
Even if you’re just starting out, using the best accounting software for self employed helps you build good financial habits, reduce errors, and stay compliant. For many self employed professionals, it’s also the easiest way to prepare for Self Assessment and cut down on the stress of tax deadlines.
How to Choose the Best Accounting Software for Self Employed
Choosing the best accounting software for self employed depends on your budget, business type, and how simple you want the system to be.
Key things to look for:
✔️ Ease of use – Quick setup, simple navigation, and intuitive features
✔️ Features – Invoicing, expense tracking, reporting, and tax software for self employed
✔️ Scalability – Ability to add payroll, reporting, or integrations as your business grows
✔️ Compliance – HMRC-recognised and Making Tax Digital (MTD) ready
✔️ Integrations – Connects easily with your bank and other tools you already use
✔️ Cost – Compare pricing, free trials, and options for cheap accounting software for self employed
By focusing on these factors, you’ll find the best bookkeeping software for self employed that saves time, reduces admin, and helps you stay in control of your finances.
Benefits of Accounting Software for Self Employed
For self employed workers, managing finances can be stressful and time-consuming. Spreadsheets and paperwork often lead to errors, missed deadlines, and wasted hours. The best accounting software for self employed takes the pressure off by automating tasks, improving accuracy, and giving you a clear picture of your business performance.
Key Benefits
✔️ Save time – Automate invoicing, expense tracking, and bank reconciliation so you can focus on your business, not admin
✔️ Improve accuracy – Reduce errors with real-time data pulled directly from your bank
✔️ Get insights – Dashboards show cash flow, profit, and expenses at a glance
✔️ Stay compliant – Submit VAT and Self Assessment using MTD-ready tax software for self employed
✔️ Grow with ease – From cheap accounting software for self employed to feature-rich paid plans with payroll and reporting
By using accounting software, self employed individuals can stay organised, cut costs, and manage their money with more confidence.
Pros and Cons of Accounting Software for Self Employed
Like any tool, accounting software has both advantages and drawbacks. For self employed professionals, the right system can simplify bookkeeping, save time, and reduce stress around tax submissions — but it’s worth weighing up the pros and cons before choosing.
Pro’s:
✔️ Time savings – Automates invoicing, expense tracking, and reconciliation, freeing up more time for clients and growth
✔️ Improved accuracy – Reduces manual errors with real-time bank feeds and categorisation
✔️ Compliance support – HMRC-recognised and Making Tax Digital (MTD) ready, making VAT and Self Assessment easier
✔️ Scalability – The best bookkeeping software for self employed can grow with your business, adding payroll, multi-user access, and integrations
Cons:
❌ Subscription costs – Most reliable platforms charge monthly fees, though some free or cheap accounting software for self employed is available
❌ Learning curve – Getting familiar with new software takes time if you’re used to manual records
❌ Unnecessary features – Some systems include extras that self employed workers may never use, which can feel overwhelming
What Are the Different Types of Accounting Software for Self Employed?
Not all accounting tools work the same way. Self employed workers can choose from different types of accounting software depending on how they prefer to manage their finances, their budget, and the features they need.
Cloud-based accounting software – The most popular option for self employed. Access your accounts from any device, connect your bank for live updates, and benefit from automatic backups and updates.
Desktop accounting software – Installed directly on your computer, offering robust features but less flexibility compared to cloud solutions.
Free accounting software – Covers essentials such as invoicing and expense tracking. A good starting point for those seeking cheap accounting software for self employed, though it may lack advanced features.
Specialist accounting software – Tailored to specific industries like construction, retail, or professional services, with custom tools designed for niche needs.
By understanding these options, you can choose the best accounting software for self employed professionals, balancing cost, usability, compliance, and scalability.
Steps to Get Started with the Best Accounting Software for Self Employed
Getting started with accounting software is straightforward. Here’s a simple process to help you find the right solution for your business:
Research providers – Compare features, reviews, and pricing to identify the best accounting software for self employed.
Choose a plan – Decide whether free or cheap accounting software for self employed meets your needs, or whether a paid plan with extras such as payroll and reporting is a better fit.
Set up your account – Connect your bank, customise your invoices, and add your business details to get up and running quickly.
With these steps, you’ll be ready to make the most of accounting software — saving time, improving accuracy, and preparing for Self Assessment with ease.
At a glance - Best Accounting Software for Self Employed Comparison:
Alternative Options to Accounting Software for Self Employed
Not every self employed worker invests in full accounting software straight away. There are alternatives that can cover basic financial management, but they often lack the automation, compliance, and reporting features provided by the best accounting software for self employed.
Spreadsheets – Tools like Excel or Google Sheets are free and flexible for simple bookkeeping. However, they require manual updates, are prone to human error, and don’t integrate with HMRC or tax software for self employed.
Bookkeeping apps – Mobile apps can help with tracking expenses and creating invoices, but they typically lack advanced features like VAT submissions, Self Assessment support, or payroll.
Outsourced bookkeeping – Hiring a bookkeeper or accountant can reduce admin, but it comes with higher costs and limits your real-time visibility of cash flow.
These options may be fine for very small setups, but as your operations grow, switching to the best bookkeeping software for self employed is usually the smarter, more scalable, and cost-effective solution.
FAQs – Best Accounting Software for Self Employed People
What is the best accounting software for self employed in the UK?
The best accounting software for self employed depends on your needs. Popular options include Xero, QuickBooks, Sage, and ANNA + Taxes, which offer invoicing, expense tracking, and HMRC compliance.
Do I need accounting software as self employed?
Yes, while it’s not a strict legal requirement, accounting software makes it much easier to track income, manage expenses, and stay compliant with HMRC’s Making Tax Digital rules.
What is the cheapest accounting software for self employed?
The cheapest accounting software for self employed often comes from providers offering entry-level plans or discounts. QuickBooks, ANNA, and FreeAgent all offer affordable packages starting at just a few pounds per month.
Is there free accounting software for self employed?
Yes, some providers offer free plans with basic features like invoicing and expense tracking. However, free accounting software for self employed usually lacks advanced tools for tax submissions and reporting.
What features should the best bookkeeping software for self employed include?
The best bookkeeping software for self employed should include expense tracking, invoicing, real-time bank feeds, reporting dashboards, and compliance with HMRC.
Can accounting software act as tax software for self employed?
Yes, many platforms double as tax software for self employed, letting you submit VAT and Self Assessment returns directly to HMRC.
Is cheap accounting software for self employed reliable?
Yes, cheap accounting software for self employed can be reliable if chosen carefully. Look for providers that are HMRC-recognised and MTD-ready, even on their lower-tier plans.
Do freelancers need the best accounting software for self employed?
Freelancers benefit from the best accounting software for self employed because it simplifies invoicing, tracks expenses automatically, and helps manage irregular income.
Can I use spreadsheets instead of accounting software as self employed?
While spreadsheets can work, they are prone to errors and don’t integrate with HMRC. Using accounting software as self employed is far more efficient and secure.
What is the difference between bookkeeping and tax software for self employed?
Bookkeeping software for self employed tracks income and expenses, while tax software focuses on submitting returns to HMRC. Many modern platforms combine both.
How do I choose the best accounting software for self employed?
Compare features, pricing, ease of use, and integrations. The best accounting software for self employed should save you time, reduce errors, and fit your budget.
What’s the advantage of cheap accounting software for self employed over hiring an accountant?
Cheap accounting software for self employed is cost-effective, gives you real-time financial visibility, and reduces admin — but you may still want an accountant for complex tax planning.
Does the best bookkeeping software for self employed integrate with banks?
Yes, most providers connect directly with UK banks, giving you automatic transaction feeds and reducing the need for manual data entry.
Can tax software for self employed handle VAT and Self Assessment?
Yes, leading providers offer VAT submissions and Self Assessment support, ensuring you stay compliant with HMRC and avoid penalties.
Is the best accounting software for self employed suitable for side hustles?
Absolutely. Whether you’re freelancing part-time or running a small business, the best accounting software for self employed helps you stay organised from day one.
Conclusion – Finding the Best Accounting Software for Self Employed
Managing finances as self employed doesn’t have to be overwhelming. The best accounting software for self employed takes care of invoicing, expense tracking, bookkeeping, and tax compliance, giving you more time to focus on running and growing your business. Whether you’re just starting out and looking for cheap accounting software for self employed, or you’re ready to invest in advanced tax software for self employed with added features, there’s a solution to fit your needs.
The right choice depends on your priorities: affordability, ease of use, HMRC compliance, or scalability as your business grows. From basic bookkeeping software for self employed to feature-packed platforms that include payroll and advanced reporting, switching to digital tools will save you time, reduce mistakes, and give you peace of mind at tax season.
👉 Ready to get started? Explore our recommended providers and find the best accounting software for self employed today — with exclusive offers to help you save money and stay compliant.
Start Your Business Journey Today with the Best Accounting Software for Self Employed
Choosing the best accounting software for self employed professionals is one of the smartest steps you can take. It helps simplify bookkeeping, save time, and reduce stress when preparing your Self Assessment. Explore our recommended providers, compare exclusive deals, and get started today with software that fits your business needs and budget.
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