Xero is a cloud-based accounting platform used by small businesses, freelancers and companies to manage finances online. It allows users to send invoices, reconcile bank transactions, track expenses, run payroll and submit VAT returns digitally. Because Xero connects directly to business bank accounts and provides real-time financial reporting, it has become one of the most popular accounting systems for UK businesses looking to automate bookkeeping and comply with Making Tax Digital.

We work with all of the main bookkeeping software packages available to UK small business users and often get asked for our opinion. This guide aims to help you choose the best package for your individual needs and gives insights from an accountants point of view.