Best Bookkeeping Software For Limited Companies

Best Bookkeeping Software For Limited Companies

Over the last 10 years Bookkeeping software has made huge advances in terms of functionality and its ability to integrate with HMRC for tax compliance purposes. In general, Bookkeeping software today helps business owners the manage their business accounts much more cost effectively than in the past.

There are various bookkeeping software options available in the market today, each with its own set of features and benefits. Personal preferences towards any specific bookkeeping software aside, we will take you through the positives and negatives of each software package along with how much the bookkeeping software costs to use.

Some of the most popular bookkeeping software options are summarised below:

Quickbooks Bookkeeping Software For Limited Companies

QuickBooks Bookkeeping Software

QuickBooks is a widely used bookkeeping software that offers features like bank reconciliations, supplier invoicing, expense tracking, and tax preparation. It is suitable for both small and large businesses, including limited companies.

Quickbooks has an app which is handy for business owners who travel a lot as it allows you to access your company accounts from any mobile or tablet device connected to the internet.

What we like about Quickbooks Bookkeeping Software

The user interface of Quickbooks bookkeeping software is user intuitive and they have a great support function if you are having trouble processing transactions.

Quickbooks has a payroll module within it which make processing pay easy for full time, part time and casual employees. It also integrates with HMRC so you can submit your VAT return without leaving the software.

What we don't like about Quickbooks Bookkeeping Software

We would like to see quickbooks integrate with marketplaces like Amazon, Vivino and On-Buy to reduce the amount of manual journal entries and invoices which need to be recorded and processed in the Quickbooks bookkeeping software on a monthly basis.

The way in which Quickbooks treats transactions in foreign currency can also be difficult to understand. Quickbooks generates gains and losses on FX on a monthly basis but it is difficult to see what transactions are causing it.

Quickbooks Bookkeeping Software Cost

Quickbooks bookkeeping costs £29.95 a month including VAT for the essentials package. This should give you all you need to manage your bookkeeping for a limited company. Note there will be a small additional cost if you want to use their payroll module. In our opinion it is worth doing this.
Xero Bookkeeping Software For Limited Companies

Xero Bookkeeping Software

Xero is another popular bookkeeping software that offers features like bank reconciliations, invoicing, and inventory tracking. It is cloud-based and can be accessed from anywhere if there is a connection to the internet.

Xero can perform various functions to help businesses manage their finances. Some of the key features and capabilities of Xero Bookkeeping software include:

  1. Invoicing: You can create and send professional invoices to customers and track their payment status.
  2. Expense tracking: You can record and categorize business expenses, track receipts, and manage expense reports.
  3. Bank reconciliation: You can link your bank accounts and credit cards to automatically reconcile transactions and keep your accounts up to date.
  4. Financial reporting: You can generate financial reports such as profit and loss statements, balance sheets, and cash flow statements.
  5. Inventory management: You can track inventory levels, set reorder points, and generate inventory reports.
  6. Payroll: You can manage employee payroll, track hours worked, and generate payroll reports.
  7. Project tracking: You can track time and expenses for specific projects and bill clients accordingly.

What we like about Xero Bookkeeping Software

Xero is a powerful all-in-one accounting and bookkeeping software program. What we like about Xero is the Financial reporting capability. Xero provides a range of predefined financial reports, including profit and loss, balance sheet, and cash flow statements, which can help you make informed decisions about your business.

Xero also has a better range of integrations with third-party apps including mobile payment processors, e-commerce platforms, and inventory management tools.

What we don't like about Xero Bookkeeping Software

One of the negatives of Xero is the learning curve for those small business owners who are not familiar with the software. As a result, you may find it challenging to use the Xero bookkeeping software at first.

Another thing to be mindful of is the level of customer support Xero provides for their bookkeeping software. Some users have reported difficulties in reaching Xero’s customer support team, and when they do the response time can be slow.

Xero Bookkeeping Software Cost

Xero bookkeeping software costs £33.60 a month including VAT for their standard package. This does not allow you to book foreign currency transactions (you need the next level up for that) and does not include the payroll module. Payroll and enhanced analytics will be included for the first 3 months but you will need to pay an additional amount for them after that.
Zoho Bookkeeping Software For Limited Companies

Zoho Bookkeeping Software

Zoho Books aims to simplify accounting and make it easy for small business owners and limited companies to keep track of their finances.

Zoho Bookkeeping is an end-to-end accounting software solution that enables you to manage your limited company bookkeeping on the cloud. Take advantage of their bookkeeping software that lets you organize your business transactions, keep accounts up-to-date, and make smart business decisions.

Zoho Books handles mundane accounting tasks so you can focus on growing your business.

What we like about Zoho Bookkeeping Software

Zoho Books is part of a wider platform under the Zoho Software banner which provides small businesses with access to Email, CRM, Finance, Marketing and HR systems to run their operations.

Unlike the other software platforms which tend to focus on just the accounting and finance functions of a small business, Zoho allows you to keep all your business process and IT under one software banner. This will help you streamline your business and drive down total cost.

What we don't like about Zoho Bookkeeping Software

The cost benefit of Zoho won’t be realised until your business or limited company has 10 or more employees and is starting to think about introducing additional systems to support other functions like marketing and HR.

Their Bookkeeping plans start at 10 users and therefore don’t make sense to use until your business or limited company has at least 5 employees who will need to use the finance functionality.

Zoho Bookkeeping Software Cost

As mentioned above, pricing for Zoho Books for their basic bookkeeping software starts at £12 a month. However you will quickly outgrow this bookkeeping package and need to be on Zoho’s ‘Standard’ bookkeeping package which is £24 a month as it includes critical functions required to run a business like stock tracking, journals and supplier credits etc.
MYOB Bookkeeping Software For Limited Companies

MYOB Bookkeeping Software

MYOB provides business management software for designed for small to medium sized businesses and markets itself as an all in one accounting, finance and tax solution to run and grow your business.

MYOB allows you to manage payroll and your workforce along with keeping on top of your business finances, inventory and projects.

MYOB was founded in 1991 and is used by thousands of businesses. They also have a large network of over 40,000 qualified bookkeepers and accountants to help support your business so you never feel alone.

What we like about MYOB Bookkeeping Software

MYOB have been around a long time so they know what they are doing. Their software is well developed and its core functionality works well.

What we don't like about MYOB Bookkeeping Software

MYOB have been sold to a private equity firm who have since tried to cut costs by outsourcing their customer service function. Once touted as a competitive advantage for the business they have made the wrong decision here. Long waits for support on the phone and very frustrated long term customers.

It is the usual PE story. Short term profit focus and forgetting about what really matters – their customers.

MYOB Bookkeeping Software Cost

MYOB is going to cost you roughly £25 a month for access to their bookkeeping and accounting software which will give you everything you need to run your business properly. They have a deal which will give you 50% off for the first 3 months.