Which Cloud Accounting Software is Best for Your Business?

The Cloud Accounting Software industry has evolved rapidly in recent years.For decades, businesses relied on desktop accounting packages or spreadsheets. The introduction of cloud-based solutions in the early 2000s changed everything — offering real-time data, app integrations, and flexible access from anywhere.

Choosing the right software today can significantly improve your business efficiency, reporting, and tax compliance.

Key Factors to Consider Before You Choose

Before diving in, think about:

• ✅ What accounting features do you need? (e.g., invoicing, expenses, payroll)

• ✅ How will you access the software? (desktop, mobile, tablet)

• ✅ How many users need access, and what permissions should they have?

• ✅ What insights do you need? (budgets, management accounts, cash flow forecasts)

• ✅ What's your budget for software and possible add-ons?

  
  

Now, let's look at three of the leading cloud accounting platforms and how they compare.

QuickBooks Online

Best for: Sole traders and small businesses looking for simple, low-cost software.

QuickBooks remains one of the most popular names in cloud accounting, offering a user-friendly experience with essential features like invoicing, expense tracking, VAT submissions, and bank reconciliations.

Plans available:

• Simple Start – Basic invoicing, expenses, VAT returns (one user).

• Essentials – Adds bill management, time tracking, and multi-currency (three users).

• Plus – Adds project profitability tracking, inventory management, and more users (up to five).

  
  

Pros:

• Easy to learn, even for non-accountants.

• Lots of integrations with third-party apps.

• Strong mobile app for on-the-go access.

  
  

Cons:

• Reporting tools can feel limited compared to competitors.

• Payroll costs extra.

• Limited users on lower-tier plans.

  
  

Our Verdict:

QuickBooks Online is a great entry point if you want something affordable and straightforward.However, businesses aiming for rapid growth may find its functionality restrictive over time.

Xero

Best for:

Businesses that want flexibility, growth potential, and powerful integrations.

Xero has been a game-changer since its launch in 2006. Built from the ground up for the cloud, it offers extensive features, outstanding app integration (over 1,000 apps now), and unlimited users on every plan.

Plans available:

• Starter – Send up to 20 invoices and enter 5 bills monthly (great for very small businesses).

• Standard – Unlimited invoices, bills, and bulk transaction reconciliation.

• Premium – All Standard features, plus multi-currency, expense claims, and project tracking.

  
  

Pros:

• Intuitive dashboard and simple-to-customize reports.

• Seamless third-party app integrations (for CRM, payroll, ecommerce, expenses, etc.).

• Unlimited users, even on basic plans.

• Real-time data ideal for better tax planning and cash flow management.

Cons:

• Multi-currency support only available on Premium plan.

• Some users mention occasional learning curve for beginners.

Our Verdict:✅ If you’re serious about growing your business and want maximum flexibility,

Xero is our top recommendation.It’s a little more expensive than basic packages, but the value and scalability more than justify it.

Sage Business Cloud

Best for: Sole traders and small retailers needing straightforward accounting with inventory tracking.

Sage is a well-known name in traditional accounting, and their cloud platform offers simple tools for invoicing, expenses, VAT returns, and reporting.

Plans available:

• Accounting Start – Simple invoicing and VAT submissions (one user).

• Accounting – Adds unlimited users, quotes/estimates, CIS support, and forecasting.

Pros:

• Clear “Getting Started” checklist for easy setup.

• Handy inventory tracking built-in.

• Affordable basic subscription costs.

Cons:

• Reporting and user interface not as polished as competitors.

• Customer support can be inconsistent.

• More manual input compared to Xero or QuickBooks.

Our Verdict:

Sage Business Cloud suits very small businesses or those with specific inventory needs.However, for businesses aiming to grow or seeking seamless tech integration, Xero would offer far better long-term value.

Final Thoughts

Choosing the right cloud accounting software can have a huge impact on your business's success. QuickBooks is a good budget option. Sage is simple but a little dated.

For most businesses with growth in mind, Xero stands out as the smartest, most flexible solution.

Still unsure?

At Glass Accountants, we’ve helped countless businesses move onto cloud software — and we’re happy to guide you too.

🔵 Get in touch today for a free, no-obligation chat about which software would fit your business best!