Choosing free bookkeeping software
In the world of finance, nothing is for free. You’ll pay sooner or later. Sometimes, bookkeeping software providers offer a free account for a period of time. The motivation behind the offer varies, and you should take the time to understand it before signing up.
You may be offered a few months to try it out. The reason behind a few months rather than days is offered by the bookkeeping software provider in the hope that you’d have uploaded a lot of data by then. Enough data to make moving away to another software difficult. Ensure you understand the pricing structure and termination conditions after the free period.
Newer bookkeeping software providers tend to offer a basic account for free without time restrictions. They hope they’ll be able to upsale you future features often essential to bookkeeping. Therefore, make sure you understand what features are included in the basic account. You don’t want to start uploading all your data and, some weeks later, find out that the software misses a crucial feature.
Basic features to look for in your free bookkeeping software
Choosing the right bookkeeping software is important for a number of reasons. If you select badly, at some point later, you may be faced with the laborious task of transferring your financial data to a more suitable tool. That alone can cost if you end up needing the help of a professional.
Here are some key features to consider:
Ease of Use
Intuitive interfaces and user-friendly navigation are essential for small business owners who may not have extensive accounting knowledge.
Invoicing
Look for software that streamlines the invoicing process, allowing you to create and send professional invoices effortlessly.
Expense tracking
Effective expense tracking tools enable you to monitor expenditures, categorise expenses, and identify areas for cost-saving.
Bank and credit card Integration
Seamless integration with bank accounts simplifies reconciliation and ensures accurate financial reporting.
Reporting
This is a feature that is often an upsell but some basic reporting capabilities should be available to give you insights into your business's financial status.
Top free accounting software for small businesses
Small businesses usually have the ambition to grow in the future, and therefore, it’s important to select accounting software that will continue to be free in the future. That’s quite difficult as most free accounting software for small businesses becomes payable once you hit certain thresholds. However, there is one option:
FreeAgent
If you have a business current account with NatWest, Royal Bank of Scotland, Ulster Bank or a Mettle bank account and make at least one transaction a month, you get a FreeAgent account.
On this basis FreeAgent is an excellent options with its powerful features and ease of use. Its funtionality includes all the essentials a small business might be need from its bookkeeping software.
Its capabilities also allow for growth. As a leading bookkeeping software provider, FreeAgent has a wide range of integrations, reporting options and other features enabling you to produce financial insights into your business.
Best free accounting software for self-employed and sole traders
The self-employed and sole traders often operate as a one-man band. There are some very useful accounting software options for those types of micro-enterprises:
QuickFile
This is a great accounting software option for the self-employed. QuickFile borrowed clothing sizing to describe its account options:
XS - up to 200 nominal transactions
S - between 201 to 500 nominal transactions
M - between 501 to 1000 nominal transactions
L - between 1001 to 4000 nominal transactions
XL - over 4000 nominal transactions
Nominal transactions include invoices, purchases, bank transactions, and journals.
XS, S and M accounts are free. You’ll be charged if the number of your nominal transactions exceeds the M size. Not all software features are available with the smaller sizes.
Zoho
This option is great for those whose turnover never exceeds £35,000 a year and who don’t create/send more than 1,000 invoices.
If you fit the above criteria, you’ll get a very free bookkeeping software options that provides with all the features needed to successfully manage your bookkeeping.
