🚨 Heads Up: Accounting Software Prices Are on the Rise – Here's What You Need to Know

If you're a freelancer or small business owner, you're likely juggling multiple responsibilities—finding clients, managing invoices, and staying on top of taxes. The last thing you need is an unexpected price hike on your accounting software.

Well, brace yourself. Both Xero and QuickBooks have announced price increases, serving as a timely reminder to review what you're paying for and whether it continues to meet your needs.

📈 Xero's Upcoming Price Changes

Starting 1 September 2025, Xero will implement the following price adjustments:

• Ignite Plan: Remains at £16/month

• Grow Plan: Increasing from £33 to £37/month

• Comprehensive Plan: Increasing from £47 to £50/month

• Ultimate Plan: Increasing from £59 to £65/month

These changes apply to both new and existing UK subscribers. It's worth noting that optional add-ons will maintain their current pricing.

💸 FreeAgent's Pricing Structure

FreeAgent offers a straightforward pricing model:

• Monthly Subscription: £33/month

• Annual Subscription: £330/year (equivalent to £27.50/month)

• Introductory Offer: 50% off for the first six months, making it £16.50/month

• Free Access: Available to business current account holders with NatWest, Royal Bank of Scotland, Ulster Bank, or Mettle (with at least one transaction per month).

💼 QuickBooks' Price Adjustments

Effective 1 July 2025, QuickBooks will adjust its pricing as follows:

• Self-Employed: £12/month

• Simple Start: £16/month

• Essentials: £33/month

• Plus: £47/month

• Advanced: £115/month

These changes affect all new and existing client-billed subscriptions.

🧾 Making Tax Digital (MTD) and Your Software Choice

With the ongoing rollout of Making Tax Digital (MTD), there's a significant push for individuals and businesses to adopt cloud accounting software. While it's tempting to follow the crowd, it's crucial to conduct your own research. Some accountancy firms are tied to specific software providers, which might not always align with your best interests.

💡 Tips to Navigate the Changes

1. Assess Your Needs: Identify the key features your business requires and determine whether your current plan provides value for money.

2. Explore Alternatives: Don't hesitate to compare different software options. What works for one business might not work for another.

3. Consult Your Accountant: Ensure your accountant supports your chosen software and can provide guidance tailored to your specific business needs.

4. Stay Informed: Keep an eye on pricing changes and promotional offers that could benefit your business.

Remember, the goal is to have software that supports your business without straining your finances. If you need assistance evaluating your options, feel free to reach out. We're here to help you make informed decisions that align with your business goals.