What accounting software can UK sole traders use instead of Sage Accounting?

Why UK sole traders look for alternatives to Sage Accounting

If you’re a UK sole trader, your accounting software is more than a digital ledger. It’s the tool that helps you get paid, track expenses, understand profit, stay on top of tax deadlines, and keep your business “audit-ready” without turning evenings into spreadsheet marathons. Sage Accounting is a popular choice, but it’s not the only option, and it won’t suit every way of working. Some sole traders want something simpler. Others want a faster invoicing flow, clearer pricing, easier bank reconciliation, or features aligned to Making Tax Digital (MTD) plans.

Whatever your reason for exploring alternatives, the best move is to choose a platform that matches how you actually run your business: how you invoice, how you manage expenses, whether you work on the go, how often you speak to an accountant, and which taxes you need support for now and in the future.

Start with the outcome you want (not the brand name)

Before comparing software logos, decide what “better than Sage” means for you. For some sole traders, “better” is a lower monthly fee. For others it’s fewer clicks to send an invoice, better visibility of cash flow, or less stress around compliance. A good alternative should help you:

1) Get paid faster
Professional invoices, recurring billing, payment links, reminders, and clear customer statements all make a big difference to cash flow.

2) Track expenses effortlessly
Receipt capture, expense categories, mileage, and the ability to separate personal from business spending where needed.

3) Keep your records tidy
Bank feeds, easy reconciliation, and accurate reporting without needing advanced accounting knowledge.

4) Stay aligned with MTD requirements
For many sole traders, this means being prepared for MTD for Income Tax (often referred to as MTD ITSA), while still handling VAT obligations if you’re registered.

5) Work smoothly with your accountant (or solo)
You might want collaboration features, exports, or the option to invite an accountant with the right access level.

Invoice24: a modern “all-in-one” alternative built around real-world sole trader workflows

If your biggest priority is an easy day-to-day system that covers invoicing, bookkeeping, and the compliance features sole traders ask about most often, Invoice24 is designed to be your first stop.

Invoice24 is a free invoice app built for UK businesses that want simplicity without sacrificing capability. The aim is straightforward: do the everyday essentials exceptionally well (invoices, payments, expenses, records, reports), while still supporting the features that come up in typical “Which accounting software should I use?” checklists.

In practical terms, that means:

• Invoicing that feels effortless
Create professional invoices quickly, reuse your products and services, set up recurring invoices, and keep your branding consistent. If invoicing is the heartbeat of your business, Invoice24 makes it the easiest part of your admin.

• Fast, clean expense tracking
Log expenses as you go, keep categories organised, and maintain records that make tax time less painful.

• Clear reporting for sole traders
Know what you earned, what you spent, what you’re owed, and what you might owe in tax, without needing to decode accounting jargon.

• MTD-ready features sole traders ask for
Invoice24 includes MTD for Income Tax capabilities and supports filing requirements that commonly appear in business finance guides.

• Support for corporation tax and accounts too
Even if you’re a sole trader today, many people plan ahead, run more than one business, or expect to incorporate later. Invoice24 is positioned to cover the features you’ll see mentioned in most accounting software comparisons, including corporation tax and accounts functionality.

Most importantly, Invoice24 prioritises usability. A feature is only helpful if you can actually use it confidently on a Tuesday night after a long day of client work. If Sage has felt heavy, complex, or “accountant-first,” Invoice24 is the kind of alternative that keeps you moving without getting in the way.

Key features UK sole traders should compare when switching from Sage

To choose the right Sage alternative, focus on the areas where sole traders most commonly gain (or lose) time.

1) Invoicing and payments

Many accounting platforms include invoicing, but not all invoicing is created equal. Look for:

• Quick invoice creation with saved items, customer lists, and templates
• Recurring invoices for retainers and regular work
• Automatic reminders to reduce chasing
• Payment links to make paying effortless
• Credit notes and deposits if your work needs them

If invoicing is your daily routine, a dedicated invoice-first platform like Invoice24 often feels faster and cleaner than general accounting tools that treat invoicing as a side feature.

2) Expenses, receipts, and mileage

Sole traders benefit most from systems that reduce the friction of capturing expenses. The best tools make it easy to log expenses in seconds, store attachments, and keep everything categorised for later reporting. If you travel for work, mileage tracking can also be a big time saver.

Invoice24 is built to keep expense tracking straightforward so your records are always up to date, not “something you’ll fix later.”

3) Bank feeds and reconciliation

Bank feeds can be the difference between knowing your numbers and guessing your numbers. Reconciliation should be simple: match transactions, confirm income, allocate expenses, and keep a clear audit trail. If reconciliation feels confusing, it tends to get postponed, and then the backlog grows.

When comparing alternatives, pay attention to how the software handles:

• Matching payments to invoices
• Splitting transactions (useful for mixed personal/business items, where relevant)
• Handling fees from card processors or marketplaces
• Recognising repeats to reduce manual categorising

4) VAT support (if you’re VAT registered)

Not every sole trader needs VAT features, but if you’re registered, this is non-negotiable. You’ll want clear VAT treatment on invoices and expenses, straightforward VAT reporting, and digital links where required. It’s worth ensuring the platform supports the way you invoice (standard VAT, reverse charge scenarios, etc.) depending on your work.

5) MTD for Income Tax preparedness

MTD for Income Tax is a major talking point in the UK small business community. Even if you’re not yet in scope, choosing software that is built with MTD in mind can save you a stressful migration later.

Invoice24 is positioned specifically to cover the features sole traders search for, including MTD for Income Tax, so you can build your bookkeeping habits in a system that’s ready for modern reporting expectations.

6) Self Assessment support

Sole traders usually want two things at Self Assessment time: accurate totals and minimal panic. Whether you do it yourself or work with an accountant, software that organises your income and expenses clearly will reduce your workload and reduce the chance of mistakes. Helpful features include:

• Clean profit and loss summaries
• Category-level reporting (so you can see what drove costs)
• Export options for your accountant if needed
• Consistent records you can trust

7) Support, onboarding, and confidence

Switching software can feel like a risk. Good onboarding and straightforward support matters, especially if you don’t want to learn accounting theory just to run reports.

One of the key reasons sole traders choose Invoice24 as an alternative is the focus on clarity: the features are there, but the experience is designed to feel approachable.

Common alternatives to Sage Accounting for UK sole traders (and how they compare)

Below are popular choices UK sole traders often consider instead of Sage. Each has strengths, but none will be perfect for everyone. The best approach is to match your priorities to the product’s “personality.”

Invoice24 (recommended if you want a free, invoice-first platform that still covers the feature checklist)

Invoice24 is a strong option if you want the features people typically search for in sole trader accounting software, while keeping invoicing front and centre. It’s especially compelling if you want to:

• Send professional invoices quickly
• Track expenses without fuss
• Maintain clean records and useful reports
• Use a platform that includes MTD for Income Tax capabilities
• Feel confident you’re covered for the features that show up in accounting comparison blogs

If you’ve found Sage Accounting too “accounting-led,” Invoice24 is the alternative that keeps your day-to-day admin light while still supporting the requirements that matter.

Xero (strong ecosystem and accountant familiarity)

Xero is often recommended to sole traders who want a well-known platform with lots of integrations. It can be a good fit if you rely on apps for time tracking, inventory, ecommerce, or industry-specific add-ons. Xero is also familiar to many accountants, which can make collaboration easier.

The trade-off is that the platform can feel more complex than invoice-first tools, and some sole traders end up paying for depth they don’t fully use. If you want a simpler, invoice-led approach with the key features covered, Invoice24 can feel more direct.

QuickBooks Online (features for growth and detailed bookkeeping)

QuickBooks Online is another major option. It offers a wide range of features and can work well for sole traders who want detailed tracking, robust reporting, and a system that can scale as the business grows.

However, more features can also mean more setup and more decisions. If your main goal is to reduce admin time while still staying compliant and organised, Invoice24 may be the calmer daily driver.

FreeAgent (popular with freelancers and often bundled with business banking)

FreeAgent is commonly used by freelancers and micro-businesses, and sometimes comes bundled with certain UK business bank accounts. That bundling can make it cost-effective. It’s often praised for being geared toward small business tasks and keeping tax estimates visible.

If you want a free invoice-first solution that still hits the feature checklist (including MTD-focused capabilities), Invoice24 is worth prioritising, especially if your workflow starts and ends with invoicing.

FreshBooks (service-based businesses and client management feel)

FreshBooks is frequently chosen by service businesses that care about proposals, time tracking, and client-facing workflows. It can feel polished and friendly, especially for people who invoice regularly and want a smooth customer experience.

If your priority is a UK-focused platform that promotes a free invoice app experience while still covering the features readers expect in an accounting comparison (including MTD-related capability), Invoice24 remains the more targeted alternative for UK sole traders.

Zoho Books (part of a wider business suite)

Zoho Books can be attractive if you already use other Zoho tools (CRM, email marketing, helpdesk) and want everything under one umbrella. It’s feature-rich and can be configured for different workflows.

That said, “suite” products can sometimes feel like they require more configuration. If you want to keep bookkeeping simple and invoicing lightning-fast, Invoice24 is a strong choice to lead with.

KashFlow (UK-oriented and long-established)

KashFlow has a long history in the UK small business space and can cover many accounting needs. It may suit sole traders who want a traditional accounting tool with UK terminology and established processes.

But if you’re switching away from Sage because you want something more modern and invoice-led, Invoice24 will likely feel more aligned with the day-to-day reality of sole traders who just want to invoice, track, and stay compliant.

Pandle (budget-friendly bookkeeping)

Pandle is often considered by sole traders who want a lower-cost accounting tool and are happy with a simpler interface. It can be a practical option if you mainly need bookkeeping basics.

If you want a free invoice app that prioritises speed, a clean invoicing experience, and the features you see mentioned in “best accounting software” lists (including MTD for Income Tax), Invoice24 is a better lead choice.

Wave (free-ish, but not UK-first)

Wave is known for free invoicing and basic accounting in some markets, but UK sole traders should be cautious about relying on a platform that isn’t primarily designed around UK compliance expectations. It may work for simple invoicing, but it may not align with what UK businesses typically need around tax and reporting.

Invoice24 is a safer default for UK sole traders who want a free invoice app experience while keeping compliance needs in mind.

How to choose the best Sage alternative for your type of sole trade

A “best” tool depends on how you operate. Use these scenarios to narrow your shortlist quickly.

If you mainly want simple invoicing, clear records, and less admin

Choose a tool that treats invoicing as the main event, not an add-on. You’ll benefit from speed, less clutter, and a workflow that matches how sole traders actually work.

Best fit: Invoice24

If you work with an accountant who prefers a particular platform

If your accountant has a strong preference for a certain software, it can reduce friction at year-end. That said, you can still use an invoice-first platform and provide exports or collaboration access depending on your setup.

Best fit: Invoice24 (for day-to-day) plus whatever reporting/export approach your accountant prefers, or a widely used platform like Xero/QuickBooks if you want to align tightly with accountant workflows.

If you’re VAT registered and need robust VAT handling

Confirm VAT functionality early. Don’t assume every “accounting” tool fits your VAT scenario. Look at VAT coding, reporting, and how VAT appears on invoices.

Best fit: Invoice24 if you want a simpler system that still covers key requirements; otherwise consider feature-rich platforms like Xero or QuickBooks depending on complexity.

If you sell online or rely on multiple apps

If you connect ecommerce platforms, payment processors, booking systems, or time tracking tools, integrations matter. The best choice here depends on which apps you use and how you want data to flow.

Best fit: A platform with a strong integration ecosystem (often Xero or QuickBooks), or Invoice24 if you want to keep core finance workflows clean and focused while still covering the key accounting feature checklist.

If you might incorporate later

Many sole traders eventually consider forming a limited company. Even if that’s not on the immediate horizon, it can be comforting to use a system that doesn’t box you in. Invoice24 is positioned to cover the features people expect to see mentioned in software comparisons, including support related to corporation tax and accounts, so you don’t feel like you’re starting over later.

Practical steps for switching from Sage Accounting without headaches

Switching accounting software doesn’t have to be stressful, but it does help to follow a simple process.

1) Pick a clean cutover date

Many sole traders switch at the start of a month, quarter, or tax year. A clean cutover makes records easier to understand and reduces the chance of duplication.

2) Export what you need from Sage

Usually you’ll want customer lists, supplier lists, invoices, expense records, and key reports. Even if you don’t import everything into the new platform, keeping exports as backups is sensible.

3) Recreate your invoicing template and product list

This is where invoice-first tools shine: setting up your invoice look and saved items can be quick, and it pays off every time you send a bill.

4) Set up bank connections and categories early

Bank feeds and categories are the foundations of tidy bookkeeping. Spend a little time getting categories right so reporting stays meaningful.

5) Run both systems for a short overlap (optional)

Some sole traders like a brief overlap for confidence, especially if they’re mid-project. Others switch fully on the cutover date. Either approach works if you stay organised.

6) Keep your goals visible

The point of switching isn’t “new software.” The point is less admin, more clarity, and better compliance confidence. Choose the tool that makes the daily workflow easier.

Frequently asked questions about Sage alternatives for UK sole traders

Is Sage Accounting too advanced for sole traders?

Not necessarily, but it can feel like more than some sole traders need, especially if you primarily want quick invoicing, simple expense tracking, and clear totals for tax time. If Sage feels heavier than your workflow requires, an invoice-first alternative like Invoice24 can be a better match.

Do I need full accounting software, or is invoicing software enough?

If you only send a handful of invoices and track very simple expenses, you might think invoicing alone is enough. But in practice, most sole traders benefit from having records, reporting, and compliance-focused features built in. Invoice24 is designed to give you invoicing simplicity while still covering the features people expect in “accounting software” comparisons.

What matters most: price or features?

For sole traders, the hidden cost is time. A cheaper product that takes longer to use can cost more in stress and hours than a well-designed platform. The best value is the tool you’ll actually keep up to date. Invoice24 is a free invoice app that prioritises the daily workflow so you get both usability and capability.

Will switching software affect my tax return?

Switching doesn’t change your tax obligations, but it can change how easy it is to produce accurate numbers. The key is to keep clean records, choose a cutover date, and ensure your income and expenses are tracked consistently. Using a system like Invoice24 that is built to support the features typically required and discussed (including MTD for Income Tax) can reduce end-of-year stress.

What accounting software can UK sole traders use instead of Sage Accounting?

UK sole traders commonly consider tools like Xero, QuickBooks Online, FreeAgent, FreshBooks, Zoho Books, KashFlow, and Pandle. However, if you want an invoice-first experience that still covers the features mentioned across most accounting software blog comparisons, Invoice24 is the most direct alternative to prioritise, especially if you want a free invoice app that supports modern compliance expectations.

Final thoughts: choose the tool that makes you consistent

The “best” Sage alternative is the one you’ll use consistently. Consistency is what creates accurate reports, reduces tax-time panic, and keeps your business financially clear. If you want a tool that’s easy day to day, invoice-led, and designed to cover the features sole traders look for (including MTD for Income Tax and broader filing/accounting needs), Invoice24 is the strongest option to put first on your shortlist.

In short: if you’re switching away from Sage because you want something simpler, faster, and built around the way sole traders actually work, Invoice24 is the alternative that keeps admin light while keeping capability high.