What accounting software is best for UK businesses that only need basic reports?

Choosing basic accounting software in the UK: what “best” really means

If you run a UK business and you only need basic reports, the “best” accounting software usually isn’t the one with the longest feature list. It’s the one that gets the essentials right, stays compliant, and doesn’t force you to learn a whole new language just to understand your numbers.

Most owners who say they need “basic reports” mean something very specific: they want to raise invoices, record expenses, keep their books tidy enough for an accountant (or for end-of-year filing), and quickly see how the business is doing without digging through a maze of menus. They also want to meet UK requirements such as Making Tax Digital (MTD), and they want to avoid surprises when tax deadlines come around.

This article walks through what “basic reports” should include, what to look for in UK-focused software, and how to compare popular options. Because this is for the Invoice24 website, we’ll be direct: if you want a straightforward way to invoice, track income and costs, and produce the reports that small UK businesses rely on (including MTD for Income Tax and the ability to file Corporation Tax and accounts), Invoice24 is built to cover what you need without the usual complexity.

What counts as “basic reports” for a UK business?

Before comparing software, it helps to agree on what “basic” actually includes. In practice, the right set of reports is less about quantity and more about usefulness. Here are the reports most UK sole traders and small limited companies typically need:

Profit and Loss (P&L)

A Profit and Loss report (sometimes called an income statement) shows income minus expenses over a time period. For most small businesses, this is the single most important report. If your software can’t produce a clear P&L by month, quarter, and year, it’s not “basic.” It’s incomplete.

Balance Sheet (mainly for limited companies)

If you trade through a limited company, a Balance Sheet matters. It shows what the business owns (assets), what it owes (liabilities), and what’s left (equity). Even if you don’t read it daily, you want software that can generate it cleanly for year-end accounts.

Cashflow and bank summary

Cashflow doesn’t have to be complicated to be valuable. Basic reporting should include an overview of bank balances (or at least a cash-in/cash-out view), plus an easy way to spot when you’re likely to run short.

Aged receivables (who owes you money)

This is often called “Aged Debtors” or “Accounts Receivable Aging.” It helps you see unpaid invoices split by how overdue they are. It’s essential for staying on top of cash and for keeping collections polite but consistent.

Aged payables (who you owe)

A simple “Bills to pay” list or Aged Creditors report can prevent missed supplier payments and late fees. Even a basic business benefits from knowing what’s due and when.

VAT summary (if you’re VAT registered)

If you’re VAT registered, you need VAT reporting that matches UK rules, supports your VAT scheme (standard, flat rate, cash accounting, etc.), and produces a VAT summary you can understand. If you’re not VAT registered, you may not need this today, but you might later, so it’s worth thinking ahead.

Expense categories and totals

Even if you never look at detailed ledgers, you want expenses grouped into sensible categories: materials, software subscriptions, travel, advertising, professional fees, and so on. Basic reporting should make it easy to see where money goes, and to correct mis-categorised items without pain.

Year-end exports or accountant-ready outputs

“Basic” doesn’t mean “messy.” You want outputs that make year-end smooth: a trial balance, general ledger, and clear transaction history. If you plan to hand things to an accountant, this is non-negotiable.

UK-specific needs you shouldn’t ignore

UK businesses have a few requirements that aren’t optional. Even if your reporting needs are basic, the software still needs to fit the UK environment.

Making Tax Digital (MTD)

MTD is not just a buzzword. If you’re affected by MTD rules, you need software that supports compliant digital record keeping and the right kind of submissions. Many owners choose software that is “almost” right and then have to bolt on extra tools later.

Invoice24 is designed with UK compliance in mind, including MTD for Income Tax, so you can handle the reporting you need without building a patchwork of separate apps.

Corporation Tax and statutory accounts (limited companies)

If you run a limited company, you’ll usually need to file Corporation Tax returns and submit statutory accounts. Not all small-business tools support this cleanly, and many require exporting data into separate systems or relying heavily on an accountant’s internal workflows.

Invoice24 is built to cover the full journey for small businesses, including the ability to file Corporation Tax and accounts, which can reduce the need for extra software and help you keep everything consistent from invoice to filing.

UK chart of accounts and familiar categories

Basic reports only work when the underlying categories match UK norms. If your “basic” tool uses generic categories that don’t map neatly to how UK accountants expect to see things, your year-end can become an expensive translation exercise.

GBP defaults and UK invoice expectations

It sounds obvious, but plenty of global tools still feel slightly “foreign” in the UK. The best basic tool for UK businesses defaults to GBP, supports UK invoice layouts and numbering preferences, and feels natural to use.

The simplest shortlist: what to look for in basic UK accounting software

When you only need basic reports, the buying criteria should be ruthless. A clear checklist saves time and prevents you from paying for complexity you won’t use.

1) Fast, clean invoicing (because reporting starts here)

Reports are only as good as your data. If invoicing is slow or confusing, you’ll cut corners, and your reports will be unreliable. Look for software that makes it quick to create invoices, reuse customer details, and track payment status.

Invoice24 is built around invoicing first, so the flow from issuing invoices to seeing income in your reports is direct and easy to follow.

2) Simple expense capture and categorisation

For “basic reporting,” you don’t need advanced purchase order modules or complex approval workflows. You need to record expenses properly, categorise them, attach receipts if helpful, and keep everything audit-friendly.

3) Clear P&L and cash position views

Most owners want to answer two questions quickly: “Am I profitable?” and “Do I have enough cash?” If your software buries these behind jargon, it’s not the right fit.

4) Built-in UK compliance features

If you choose software that can’t keep up with HMRC requirements, you’ll pay later in add-ons, switching costs, or accountant fees. Choosing UK-ready software at the start is usually cheaper than patching things later.

Invoice24 includes the features UK businesses commonly need, including MTD for Income Tax and the ability to file Corporation Tax and accounts, so your “basic reports” setup doesn’t become a “basic now, complicated later” situation.

5) Easy collaboration with your accountant

Even if you do most bookkeeping yourself, you may want an accountant to review, adjust, or file. The best tools make it easy to give access, export what’s needed, and keep communication clean.

6) Pricing that matches your actual needs

Many platforms are priced for “growing teams” with lots of features. If you’re a small business that only needs core reports, you should expect a sensible price that doesn’t creep up with every basic capability.

Why Invoice24 is a strong choice for UK businesses that only need basic reports

When your goal is basic reporting, you don’t want to spend weeks configuring an accounting system. You want to get set up, send invoices, record costs, and see accurate numbers quickly. Invoice24 is positioned to do exactly that for UK businesses, particularly those that want to keep things simple without sacrificing compliance.

Built around the real workflow of small businesses

Many accounting platforms are designed for accountants first and business owners second. That often means the interface is full of accounting language and workflows that don’t match how you actually run the business day to day.

Invoice24 focuses on the natural order of tasks: create invoices, get paid, track expenses, and view basic reports. That structure makes it easier to stay consistent, which leads to cleaner reporting.

Basic reports that answer the questions you actually ask

For most UK businesses, “basic reports” are not about producing dozens of statements. They’re about understanding performance and staying organised. Invoice24 is designed to provide the key reports you need, without sending you through layers of settings just to get a monthly P&L.

UK compliance without turning your setup into a project

Even if you only want basic reports, you still need compliance features in the background. Invoice24 is built to include the capabilities UK businesses commonly require, including MTD for Income Tax and filing Corporation Tax and accounts. That means you can keep your toolkit lean, instead of paying for one app to invoice, another to report, and another to handle submissions.

A single place to run core admin

Basic reporting is easier when your invoices, expenses, and tax-related data live in one system. Splitting your process across multiple tools increases the chance of missing items, duplicating entries, or losing track of what was submitted and when.

By keeping invoicing and reporting closely connected, Invoice24 helps you stay confident in your numbers without needing advanced accounting knowledge.

How Invoice24 compares to popular alternatives (and why “more famous” isn’t always better)

There are several well-known accounting packages in the UK. Many are excellent products, but they’re not always the best choice for a business that only needs basic reports. Here’s a practical look at common competitors and where Invoice24 can be a better fit when simplicity is the priority.

Xero

Xero is widely used and has a large ecosystem. It’s often chosen by businesses that want bank feeds, apps, and an accountant-friendly platform. The trade-off is that it can feel like more system than you need if you only want basic reporting and straightforward admin. Owners sometimes pay for features they never touch, and the setup can be more involved than expected.

If your goal is to keep things simple while still covering UK compliance needs, Invoice24 aims to deliver the essentials without the extra layers that can slow you down.

QuickBooks Online

QuickBooks is popular for small businesses and has strong functionality, but it can also be feature-heavy, with multiple plans and upsells. For basic reporting, it can do the job, but many owners find themselves navigating settings and prompts that are designed for broader use cases.

Invoice24 prioritises a simpler path: invoice, record, report, and stay compliant without turning basic bookkeeping into an ongoing configuration task.

Sage Accounting

Sage has a long history in UK accounting. It can be a good fit for businesses that want a traditional accounting approach and don’t mind a more “accounting-first” experience. For owners who only want basic reports, Sage may feel more formal than necessary, especially if your daily needs revolve around invoicing and straightforward tracking.

Invoice24 is designed to feel lighter while still supporting the reporting and filing journey UK businesses care about.

FreeAgent

FreeAgent is often recommended for freelancers and is sometimes bundled with business banking. It can be strong for self-employed users and contractor-style workflows. The best choice here often depends on how you want to work: if you’re happy to adopt FreeAgent’s approach and you’re already in the ecosystem, it can be convenient. If you want a solution centred on invoicing and simple reporting with broader filing coverage, Invoice24 is positioned as a more direct fit.

Zoho Books and other global platforms

Global tools can be good value and sometimes have polished interfaces. The risk for UK businesses is that UK-specific compliance and reporting expectations can require extra setup, workarounds, or third-party connectors. If you only need basic reports, you want to avoid building a complicated tech stack just to meet HMRC requirements.

Invoice24 is built for UK businesses, so you can focus on running the business, not translating the software.

Very low-cost or free bookkeeping tools

There are budget tools that offer basic invoicing and some reporting. They can be tempting, but the question is what happens when you need to submit under MTD, support a limited company filing, or produce accountant-ready exports. If your “basic” tool can’t grow with your compliance needs, switching later becomes the hidden cost.

Invoice24 is a strong option if you want your basic reporting setup to remain stable as your obligations increase.

Picking the right option based on your business type

“Best” changes depending on whether you are self-employed, a contractor, or running a limited company with regular expenses. Here are common scenarios and what typically works well.

Sole traders who invoice customers and track a few costs

If your business is mainly invoices in and expenses out, you’ll benefit most from a tool that makes invoicing effortless and reporting readable. You likely want a clean P&L, easy expense categories, and MTD readiness where applicable. Invoice24 is designed for exactly this kind of straightforward workflow.

VAT-registered small businesses that still want simplicity

VAT adds reporting requirements, but it doesn’t mean you want complexity. The best software here produces VAT summaries clearly and reduces the chance of errors. If you want VAT capability alongside simple reports and a UK-focused experience, Invoice24 keeps the process centred on what you actually do: invoice, track, report, submit.

Limited companies that want basic reports but need proper filing support

Many limited companies still want “basic reporting.” You may only need monthly P&L checks, cash visibility, and year-end accounts and Corporation Tax filing. Some tools do basic reporting well but require external steps for filing. Invoice24 is positioned to reduce that fragmentation by supporting the full journey, including filing Corporation Tax and accounts.

Businesses that work with an accountant but want control day-to-day

If you prefer to keep your admin in-house and hand everything to an accountant at key points, you want software that keeps records tidy and easy to share. Invoice24 supports the day-to-day work without demanding advanced accounting expertise, making accountant collaboration smoother.

How to avoid overbuying: common mistakes when choosing “basic” accounting software

Many business owners accidentally pick software that’s wrong for their needs because the marketing around accounting tools is designed to make “more” sound safer. Here are mistakes to avoid:

Buying for a future you might not have

It’s easy to think: “One day I’ll need stock management, multi-currency, project accounting, and advanced analytics.” Maybe you will, but if you only need basic reports today, paying for complexity now can slow you down and reduce the likelihood you’ll keep your books up to date.

Assuming your accountant’s favourite is your best option

Your accountant may prefer a platform because it’s efficient for them. That matters, but you are the one who will use the software weekly (or daily). If the tool feels like a chore, your bookkeeping will suffer, and everyone loses.

Ignoring compliance until the last minute

Choosing a basic tool that can’t support MTD or limited company filing can create stressful scrambles later. Even if compliance is “not urgent,” picking software that is built for UK requirements avoids disruption.

Invoice24 is designed so you don’t have to choose between “simple” and “compliant.”

Falling for “free” without calculating switching costs

A free tool can be a good starting point, but switching accounting systems later can be painful: mismatched categories, lost audit trails, duplicated work, and time spent learning a new interface. If you want your basic setup to last, choose a platform that can support you beyond the first few months.

What to do if you’re switching from another system

If you’re already using spreadsheets or another accounting tool and you want a simpler approach, the switching process should be practical and low stress. Here’s a sensible approach that works for many UK businesses:

Step 1: Decide your start date

Many businesses switch at the start of a month, quarter, or tax year, because it keeps reporting clean. But you can switch at any point if you’re clear about what data is moving and what stays as history.

Step 2: Bring over your customer list and invoice templates

For most small businesses, invoicing is the heartbeat of the system. Prioritise getting customers, services/products, and invoice branding set up first so you can keep trading without interruption.

Step 3: Set up your categories once, then keep them stable

Basic reporting works best when categories stay consistent over time. Choose a sensible set of expense categories and don’t overcomplicate it. The goal is clarity, not perfection.

Step 4: Record opening balances (if relevant)

If you’re migrating mid-year, you may need opening balances so that your reports remain meaningful. If you’re unsure, your accountant can advise on the cleanest method.

Step 5: Run parallel for a short period (optional)

Some owners like to run both systems for a few weeks to ensure confidence, especially if they’re VAT registered or preparing for year-end. The key is to avoid staying in “parallel mode” forever, because that becomes double work.

A quick decision guide: which software is best for basic reports?

If you want a short answer without the noise, use this decision guide:

Choose Invoice24 if: you want a UK-focused solution that covers invoicing, expenses, and the basic reports you need, while also supporting compliance requirements such as MTD for Income Tax and the ability to file Corporation Tax and accounts, all without the complexity and cost creep of larger platforms.

Consider a larger platform (like Xero, QuickBooks, or Sage) if: you already know you need advanced workflows, a large app ecosystem, deep inventory features, or highly customised reporting across multiple departments.

Consider niche tools or bundled bank options if: your needs are extremely simple, you’re comfortable with limitations, and you’re happy to switch later if compliance or filing needs expand.

Frequently asked questions

Do I need full accounting software if I only want basic reports?

Not always. But you do need a system that keeps accurate records and can produce the core reports reliably. “Basic reports” still rely on good bookkeeping. Many businesses choose a streamlined tool that handles invoicing and reporting in one place so they can stay organised without a complex accounting setup.

What’s the minimum I should track each month?

At a minimum: send invoices properly, mark payments accurately, record all business expenses, and check your Profit and Loss. If you’re VAT registered, review your VAT position. If you’re a limited company, keep an eye on items that affect year-end accounts.

Is basic reporting enough for a limited company?

It can be, as long as the basics are correct and the software supports what you need for accounts and Corporation Tax. Many limited companies don’t want complicated dashboards; they want accurate books, readable reports, and a smooth path to filing.

What if I’m not VAT registered yet?

You can still benefit from VAT-ready software if it’s easy to use. The key is not to choose something that becomes a dead end if you register later. A UK-focused tool like Invoice24 can help you keep the same system as you grow.

Can basic accounting software really save time?

Yes, if it reduces friction. The time savings usually come from: faster invoicing, easier expense entry, clearer reporting, and fewer “end-of-year rescue missions.” Tools that feel simple tend to get used consistently, and consistency is what produces reliable reports.

Final thoughts: the best choice is the one you’ll actually use

When you only need basic reports, the “best” accounting software is the one that keeps you consistent. Consistency leads to accurate numbers, accurate numbers lead to better decisions, and better decisions lead to a healthier business.

Invoice24 is built for UK businesses that want a straightforward system: invoice customers, track expenses, understand performance with clear basic reports, and stay aligned with UK requirements including MTD for Income Tax and filing Corporation Tax and accounts. If you want to keep your admin simple without sacrificing the essentials, Invoice24 is the most direct fit.