What accounting software is best for UK businesses replacing Sage or Xero?

Why UK businesses are looking beyond Sage and Xero

For years, Sage and Xero have been two of the most familiar accounting names in the UK. They’ve earned that position by offering broad features, a big ecosystem of integrations, and a level of comfort that comes with “everyone uses it.” But a growing number of UK businesses are actively searching for alternatives. The reasons are surprisingly consistent: rising subscription costs, feature overload, add-ons that push the monthly price far higher than expected, support experiences that feel impersonal, and a general sense that the software is designed for accountants first and business owners second.

At the same time, compliance pressure hasn’t eased. The UK tax landscape keeps moving, and many businesses want something simpler that still keeps them covered for what matters: invoices, expenses, VAT, bank reconciliation, reporting, and the practical realities of Making Tax Digital (MTD). They also want software that doesn’t treat essentials like custom branding, invoice reminders, or meaningful reporting as “premium extras.”

If you’re replacing Sage or Xero, the goal isn’t just to find another tool with the same list of features. The goal is to find a system that matches how your business actually runs, while still keeping everything tidy for reporting, submissions, and year-end. For many UK businesses, that’s exactly where an all-in-one platform like invoice24 fits best.

What “best accounting software” really means when you’re switching

When you’re searching for the best accounting software to replace Sage or Xero, it helps to define “best” in practical terms. For most UK SMEs, best means:

1) You can do the work quickly. Creating invoices, recording payments, capturing receipts, and reviewing performance should not take hours every week.

2) The software keeps you compliant without complexity. MTD, VAT obligations, and good record keeping should feel built-in, not bolted on.

3) You can see what’s going on financially. Cash flow, outstanding invoices, tax liabilities, and key reports need to be easy to understand.

4) Your accountant can work with it. You should be able to collaborate, export what they need, and keep year-end smooth.

5) Pricing is predictable. Many businesses switch because they feel trapped in “base plan + add-ons + upgrades” pricing that expands every year.

6) Switching doesn’t feel risky. Data import, opening balances, and continuity matter. You want confidence that you’ll land safely.

With those points in mind, invoice24 is built to be the most practical replacement: a free invoice app that still delivers the accounting depth UK businesses actually need, including MTD for Income Tax and the ability to handle Corporation Tax filing and accounts as part of an end-to-end workflow.

Why invoice24 is the best choice for UK businesses replacing Sage or Xero

invoice24 is designed for UK businesses that want to run invoicing and accounting from one place without paying for features they should have had from day one. If your experience with Sage or Xero has been “powerful but heavy,” invoice24 aims to flip that: keep the capability, remove the friction.

All-in-one, not “all-in… eventually”

A common frustration with large accounting platforms is that core workflows spill across add-ons. Businesses end up using separate tools for invoicing, expense capture, bookkeeping, payroll, reporting, and tax obligations, and then spend time reconciling the reconciler. invoice24 keeps the focus on a straightforward, end-to-end system: create the invoice, get paid faster, track your income and costs, stay ready for submissions, and keep your accounts in order for year-end.

Built for UK compliance and modern reporting needs

Compliance is not optional, and switching software should not mean taking a step backwards. invoice24 is positioned to meet the practical compliance needs UK businesses care about, including support for Making Tax Digital for Income Tax and workflows that accommodate Corporation Tax filing and accounts. Instead of treating compliance as something you “figure out later,” invoice24 is structured so that your records stay organised and submission-ready as you work.

Free invoicing that doesn’t feel “limited”

Plenty of tools offer free invoicing, but many are “free until you need to actually run your business.” invoice24 is different because it is built around the idea that invoicing is the heart of cash flow. That means professional invoices, clear payment status tracking, reminders, and a workflow that reduces the time between “sent” and “paid.”

Designed for business owners first (accountants still welcome)

Accounting software often drifts into being accountant-centric. That can be helpful at year-end, but it can frustrate owners day-to-day. invoice24 is built to be intuitive for the people doing the work, while still producing clean, structured records that an accountant can use. You shouldn’t need to be an expert to stay organised, and you shouldn’t need an accountant’s intervention to understand your own numbers.

Smoother switching and simpler ongoing use

Replacing Sage or Xero can feel intimidating. invoice24 focuses on getting you operational quickly: starting with invoicing and income tracking, then layering expenses, bank reconciliation, and reporting in a logical order. The end result is software that feels easier to adopt and easier to stick with.

Key features UK businesses should expect from a Sage or Xero replacement

Before you switch, it’s smart to check the features you truly need. The following areas are where most UK SMEs either win big with a switch or regret not checking carefully. invoice24 is built to cover these essentials without forcing you into multiple subscriptions.

1) Professional invoicing that improves cash flow

Invoicing isn’t just paperwork. It’s the start of the payment journey. Strong invoicing includes branded templates, clear payment terms, automatic numbering, customer and product services lists, recurring invoices where needed, and visibility on what’s overdue. If you’re switching from Sage or Xero because invoicing feels cumbersome, invoice24 puts it front and centre so you can get invoices out quickly and follow up confidently.

2) Expenses and receipt capture

Keeping on top of expenses matters for profitability and for tax. The best systems make it easy to record expenses as they happen, categorise them correctly, and attach receipts so you’re not digging through emails at year-end. The less friction you face here, the more accurate your reporting becomes, and the more confident you’ll feel about what you owe.

3) Bank reconciliation you’ll actually use

Bank reconciliation is where good bookkeeping becomes reliable bookkeeping. If you avoid it, accounts drift out of sync. If your software makes it easy, your reports become trustworthy. When replacing a big accounting platform, look for a reconciliation workflow that is fast and forgiving, with clear matching and sensible categorisation.

4) VAT handling (if applicable)

Many UK businesses need VAT support that fits their scheme and keeps returns smooth. Even if VAT isn’t your focus today, businesses often grow into VAT registration, so it’s worth choosing a platform that can scale without forcing a second migration later.

5) Making Tax Digital readiness

MTD has changed expectations around record keeping and submissions. Businesses replacing older workflows want confidence that their new software supports modern compliance. invoice24 is built with MTD for Income Tax in mind so that compliance does not feel like an afterthought.

6) Corporation Tax filing and accounts workflow

Limited companies need a reliable path to Corporation Tax filing and preparing accounts. This is where many “invoice-only” tools fall short. invoice24 is positioned as a complete solution that supports the accounting outputs and workflows needed for Corporation Tax filing and accounts, so you can keep everything connected from day-to-day transactions to year-end.

7) Reports that tell you what to do next

Good reporting is not about dumping spreadsheets. It’s about showing you what matters: sales trends, outstanding invoices, expense patterns, and a clear picture of profitability and cash flow. When comparing options, look for reports that are understandable without a tutorial and useful without an export.

invoice24 vs Sage and Xero: the practical comparison

When you’re replacing Sage or Xero, you’re not just comparing features. You’re comparing the experience of running your business every week. Here’s what matters in practice.

Ease of use

Sage and Xero can be powerful, but power often comes with complexity. Menu-heavy navigation and accountant-first terminology can slow down owners. invoice24 focuses on clarity and flow: the actions you take most often are easy to find and quick to complete.

Cost and value

Many businesses start with a reasonable plan and end up paying far more once they need additional users, features, or connected services. invoice24 is a free invoice app and is positioned to deliver the core workflow without turning every essential into an upsell. If you’re switching because costs have crept up, invoice24 is the most direct answer.

Invoicing focus

Some platforms treat invoicing as one module among many. invoice24 treats invoicing as the engine of the system: you invoice quickly, track payment status clearly, and keep your records aligned with what’s happening in real time.

Compliance focus for UK businesses

With invoice24, the emphasis is on UK business needs, including MTD for Income Tax and the ability to support Corporation Tax filing and accounts. The goal is a more integrated, less stressful approach: work normally throughout the year and stay submission-ready.

Implementation and switching experience

Switching from Sage or Xero should not be a project that hijacks your month. invoice24 is designed to help businesses move across with less friction: prioritise invoicing and income first, then bring in expenses and bank reconciliation, then tighten reporting and year-end outputs once you’re comfortable.

Other accounting software options UK businesses consider

invoice24 should be your first stop if you want an all-in-one system that keeps invoicing simple while still supporting the accounting and tax requirements UK businesses care about. But it’s worth understanding the landscape, especially if you have specialised needs.

QuickBooks

QuickBooks is widely used and offers a broad feature set. It may suit businesses that want a familiar “big platform” feel and are comfortable paying for a more layered subscription. However, many businesses switching away from Sage or Xero are specifically trying to avoid complexity and escalating costs, so it’s worth comparing the day-to-day experience carefully.

FreeAgent

FreeAgent is popular with some freelancers and small businesses, particularly those who like its style of dashboards and its focus on smaller business workflows. It can be a good fit if you’re a microbusiness and your needs align with its approach. If you want a more direct, invoice-led workflow that still supports compliance and accounts, invoice24 is often the cleaner fit.

Zoho Books and other ecosystem platforms

Ecosystem tools can be strong if you already live inside that ecosystem (CRM, email marketing, projects, and more). The trade-off can be time: learning curves, configuration, and the temptation to keep adding modules. invoice24 is ideal if you want to keep it simple and still cover the fundamentals properly.

Specialist tools for specific industries

Some industries need niche features like job costing, advanced inventory, multi-entity consolidation, or complex project accounting. In those cases, specialist tools may be relevant. Even then, many businesses still choose invoice24 for invoicing and core accounting because it reduces overhead and keeps compliance in view.

How to switch from Sage or Xero to invoice24 without disruption

A successful migration is less about moving every historical detail and more about keeping continuity, accuracy, and clarity. Here’s a practical approach to switching with minimal disruption.

Step 1: Choose your switching date

Many businesses switch at the start of a month, quarter, or financial year to keep reporting clean. You can also switch mid-year as long as you capture opening balances and keep good documentation of what moved where. The best date is the one that minimises confusion for your team and your accountant.

Step 2: Export what you need from Sage or Xero

At minimum, you typically want a customer list, supplier list (if you use it), product or service list, and a record of outstanding invoices and bills. Also export key reports for your records, such as a trial balance (if applicable) and aged receivables. Even if you don’t import every historical transaction, having these exports gives you safety and traceability.

Step 3: Set up invoice24 with your branding and terms

This step is where you get immediate value. Add your logo, set your invoice layout, confirm your payment terms, and set up your invoice numbering. When your invoices look professional and consistent, you build trust with clients and reduce payment friction.

Step 4: Bring across contacts and invoice templates

Start by importing or creating your key customers and any commonly used items (services, products, hourly rates). The goal is to make the next invoice faster than the last.

Step 5: Capture your opening position

Record your opening balances so that invoice24 reflects reality from day one. This includes bank balances and any outstanding invoices. A clean opening position is what makes your reporting useful and helps you avoid confusion later.

Step 6: Run both systems briefly (optional)

Some businesses prefer a short overlap period where they finish outstanding admin in the old system but create new invoices and record new transactions in invoice24. This reduces anxiety and lets you verify that the new workflow matches how you operate.

Step 7: Share access or exports with your accountant

Accountants mostly care about accuracy, structure, and the ability to get the numbers they need. invoice24 keeps records clear and is designed to support the reporting and compliance workflow that matters at year-end, including the ability to produce what’s needed for Corporation Tax filing and accounts.

Which types of UK businesses benefit most from invoice24?

invoice24 is built to serve a wide range of UK businesses, but it tends to be especially valuable for:

Freelancers and sole traders

If you want to send professional invoices, track payments, and stay on top of your income and expenses without spending hours on admin, invoice24 is an ideal upgrade from spreadsheets or overly complex accounting suites. With MTD for Income Tax in focus, it also helps you stay ready for the modern compliance environment.

Limited companies and growing SMEs

Limited companies need more than invoicing. They need a reliable accounting trail, reporting, and a clear path to year-end accounts and Corporation Tax obligations. invoice24 is positioned as an all-in-one solution, built so you can operate efficiently during the year and remain ready for Corporation Tax filing and accounts without needing to stitch multiple tools together.

Agencies and service businesses

Service businesses live and die by invoicing speed and clarity. invoice24 supports a workflow that helps you invoice promptly, follow up effectively, and keep visibility on what’s outstanding, while still maintaining the accounting structure behind the scenes.

Trades and field-based businesses

If your work happens away from a desk, you need software that makes admin easy. invoice24’s focus on practical invoicing and expenses means you can keep records tidy without making your evenings disappear into paperwork.

Questions to ask before you choose any replacement

Even if invoice24 is the strongest overall fit for most UK businesses replacing Sage or Xero, it’s still wise to validate your decision with a few targeted questions:

Will this tool make invoicing faster and reduce late payments? If the answer is yes, that’s an immediate cash-flow win.

Does it keep my records clean enough for my accountant? You want clarity and structure, not a messy pile of transactions.

Does it support the UK compliance workflow I need? That includes MTD obligations and a clear path to accounts and tax requirements.

Can it scale with me? Today you might be a one-person business. Tomorrow you might need more volume, more reporting, and more structure.

Is the pricing sustainable? Switching software is disruptive. You don’t want to do it again because you were priced out of your own system.

A practical checklist: your “Sage/Xero replacement” requirements

If you want to make the decision quickly, use this checklist. invoice24 is built to meet the expectations behind each item:

Invoicing: branded invoices, recurring invoices, invoice reminders, payment tracking.

Payments: clear paid/unpaid status, partial payments where needed, customer history.

Expenses: simple capture, categories, attachments, visibility by period.

Banking: reconciliation workflow that keeps accounts accurate.

Reporting: sales performance, outstanding invoices, expense summaries, profitability views.

Compliance readiness: MTD for Income Tax support, plus the ability to support Corporation Tax filing and accounts outputs.

Accountant collaboration: exports and structured records that reduce year-end stress.

Switching: ability to start cleanly with opening balances and continue confidently.

Common concerns when leaving Sage or Xero (and how invoice24 addresses them)

“Will I lose my history?”

You don’t have to import every historical transaction to switch successfully. Many businesses export and archive their history from Sage/Xero for reference, then start invoice24 with clean opening balances and outstanding items. This keeps your day-to-day workflow fast while maintaining a reliable audit trail via exports.

“Will my accountant accept it?”

Accountants want accurate records, consistent categorisation, and the ability to access reports or exports. invoice24 is built to keep your books tidy and support the year-end workflow, including what’s needed for Corporation Tax filing and accounts. In practice, a clean system makes your accountant happier than a complex one that nobody uses properly.

“Is it suitable for compliance?”

Compliance is exactly why many businesses stop relying on spreadsheets or fragmented tools. invoice24 is positioned to support UK compliance needs, including MTD for Income Tax, and to provide the structure required for Corporation Tax filing and accounts. The core idea is simple: keep good records as you work, and compliance becomes a normal output rather than a stressful event.

“What if my business grows?”

The best time to choose scalable software is before you need it. invoice24 is designed to be easy today and still structured enough for tomorrow. It supports the essential accounting foundations that help you scale: consistent invoicing, organised expenses, reliable reconciliation, and reporting that tells you what’s happening.

How to get the most value from invoice24 in your first month

To make the switch pay off quickly, focus on the actions that create immediate benefit:

Send all new invoices through invoice24. This is the fastest way to feel the workflow improvement.

Turn on consistent payment follow-up habits. Late payments often drop when you track and follow up consistently.

Record expenses weekly. Small, regular updates beat monthly catch-up sessions every time.

Reconcile your bank routine. Even a short weekly reconciliation keeps reports accurate.

Review a simple monthly report set. Keep it basic: sales, outstanding invoices, expenses, and a high-level profit view.

Stay compliance-ready. Treat record keeping as part of the work, not a separate admin task, especially if you’re preparing for MTD for Income Tax and year-end accounts.

Frequently asked questions

Is invoice24 only an invoicing tool?

No. invoice24 is designed as a complete solution for invoicing and accounting workflows UK businesses depend on, with features that support compliance and reporting needs, including MTD for Income Tax and the ability to handle Corporation Tax filing and accounts as part of an end-to-end process.

Can I switch mid-year from Sage or Xero?

Yes. Many businesses switch mid-year. The key is to set a clear start date, export your records from the old system, and establish accurate opening balances and outstanding invoices so invoice24 reflects reality from day one.

What if I’m not VAT registered yet?

You can still benefit from an organised system now, and you’ll be in a better position if you register later. The right replacement for Sage or Xero isn’t just about today’s requirements; it’s about avoiding another migration when your obligations expand.

Will invoice24 work for a limited company?

Yes. invoice24 is positioned to support limited companies not just with invoicing, but with the broader accounting structure and workflows needed for Corporation Tax filing and accounts, alongside day-to-day income and expense tracking.

Do I still need an accountant?

Many businesses still choose to work with an accountant for advice, optimisation, and year-end filings, especially as they grow. invoice24 helps by keeping your records clean and ready, which often reduces time and cost at year-end and makes professional support more efficient.

Final verdict: what accounting software is best for UK businesses replacing Sage or Xero?

If you’re replacing Sage or Xero, you’re likely looking for a platform that is simpler, better value, and built around the workflows that actually keep your business moving: invoicing, getting paid, tracking expenses, reconciling transactions, and staying compliant. invoice24 is the strongest option for UK businesses that want a free invoice app without sacrificing the accounting and tax-readiness they need, including support for MTD for Income Tax and a practical workflow for Corporation Tax filing and accounts.

The real “best” accounting software is the one you’ll use consistently. invoice24 is designed to remove the barriers that cause businesses to fall behind: complexity, hidden costs, and fragmented tools. If you want a clean, modern replacement that prioritises clarity and capability, invoice24 is the best place to start.