It is now more than ever difficult to manage finances in the UK, as Making Tax Digital (MTD) requirements, VAT returns, and proper bookkeeping introduce stress on both a business and a freelancer. The relevance of AI accounting software is emphasized by the fact that many small businesses find it difficult to remain in compliance and save time and prevent mistakes.
This is where the right tools come in. AI accounting software will ensure that record-keeping is automated in 2025, VAT reporting is simplified, and actionable information is served to enable businesses to develop efficiently. This guide lists the most popular 10 AI accounting software, including QuickBooks, Zoho Books, Xero, Vic.ai, Sage Intacct, FreshBooks, NetSuite by Oracle, Trullion, Botkeeper, and Sage to Accountants, and assists a business in addressing the contemporary accounting issue and a seamless MTD compliance.
What is AI Accounting Software?
AI accounting software is a digital application that automates record keeping, VAT returns, and financial statements of companies. Accounting can be easy and efficient in 2025 with the assistance of tools such as QuickBooks, Zoho Books, Xero, Vic.ai, Sage Intacct, FreshBooks, NetSuite by Oracle, Trullion, Botkeeper, and Sage to the Accountants, enabling businesses in the UK to save time, reduce errors, and be MTD-compliant to make accounting effortless and effective among freelancers and small businesses.
The 10 Best AI Accounting Software to Know in 2025
The top 10 AI accounting software that will assist the UK business automate their bookkeeping, VAT filing, and MTD are as follows. Such tools are QuickBooks, Zoho Books, Xero, Vic.ai, Sage Intacct, FreshBooks, NetSuite by Oracle, Trullion, Botkeeper, and Sage for Accountants that are discussed below.
QuickBooks
QuickBooks is AI accounting software that assists small to medium-sized UK businesses to computerise and automate their document keeping and VAT submissions and financial records through the Internet using computers. It is entirely Making Tax Digital (MTD) ready and compatible with the VAT and the forthcoming Income Tax Self Assessment (ITSA).
QuickBooks is most applicable to sole traders, small businesses, and accountants, which offers invoicing, expense management, payroll, and real-time reporting. It connects directly to HMRC and bridging software is eliminated and an easy-to-use dashboard to stay in the compliance.
Key Features
- Automated VAT, Income Tax Submissions.
- Cash flow forecasting and real time reporting.
- Possible invoices, reports and dashboards, which can be customised.
- Merging banks and automatic classification of transactions.
- On the go mobile application of management.
- Interconnection with over 750 third party applications.
Pricing (UK)
- Sole Trader: £10/month
- Simple Start: £16/month
- Essentials: £38/month
- Plus: £56/month
- Advanced: £123/month
Pros
- MTD-ready for VAT & Income Tax
- The artificial intelligence-based cash flow forecasting.
- Easy-to-use interface
- Wide integrations and mobile application.
Cons
- Higher tiers can be costly
- There are the bank feeds which have to be updated manually.
- Novices can get confused with interface.
- Lacks time tracking (is QuickBooks Time add-on necessary?).
Who Should Use QuickBooks
QuickBooks suits SMEs, a business with a VAT, freelancers, sole traders and accountants with a need to take a simple compliance or a high-end AI-generated information.
2025 Updates
The current AI accounting software is able to offer AI driven cash flow predictions, enhanced e-commerce ties and automation enhancements of the receipts, bank regulation, and payroll.
Zoho Books
Zoho Books is Ai accounting software in the UK based in the cloud and is offered to small businesses and freelancers in the UK who are located in the UK to automate accounting services including bookkeeping, VAT filing, and financial reporting. It is completely Making Tax Digital (MTD) compliant and can be integrated into the Zoho suite to invoice, expenses management, and inventory management.
Zoho Books is user-friendly and they fit solopreneurs, small companies as well as accountants, including time tracking, receipt scanning, and real-time financial data. The mobile application will ensure that the management is done on the move and the platform will have a user-friendly interface which is contemporary.
Key Features
- Automated filing of VAT and Income Tax.
- Tracking of expenses and payment scanning.
- Custom invoices, dashboards and inventory control.
- Mobile app & client portal
- AI categorisation of transactions.
Pricing (UK)
- Free: £0/month
- Standard: £12/month
- Professional: £24/month
- Premium: £30/month
Pros
- Easy to use
- Free & low-cost plans
- Automation of AI and smart reporting.
- Integrates with Zoho suite
Cons
- Minor third-party integrations.
- Support only weekdays
- There are certain aspects of the projects that require enhancement.
Who Should Use Zoho Books
Perfect in small business, freelance, and accountant, who want uncomplicated AI accounting software Zoho Books to manage finances and generate AI insights MTD-compliant.
2025 Updates
Features added UK VAT and MTD, new automation templates and better workflow management to small businesses.
Xero
An example of AI accounting software is Xero, a cloud-based online service aimed at small to medium business entities in the United Kingdom and automates bookkeeping, VAT reporting, and financial reporting. It is fully MTD compliant and is capable of supporting VAT and future Income Tax Self Assessment (ITSA) and connects to banks and 800+ apps.
Xero is a good fit for freelancers, SMEs, and accountants with invoicing, tracking expenses, inventory, and secure client portal features. It has real-time insights via its dashboard and AI accounting software assists in bank reconciliation automation.
Key Features
- ITSA automation and VAT.
- AI transaction matching and bank reconciliation.
- Custom invoices & dashboards
- Expense & inventory tracking
- Mobile app & client portal
- Integration with 800+ apps
Pricing (UK)
- Simple: £7/month
- Ignite: £16/month
- Grow: £37/month
- Comprehensive: £50/month
- Ultimate: £65/month
- Additional users: £2.50/month each
Pros
- VTOL and ITSA-compliant fully.
- Easy to use by accountants.
- Strong app integrations
- Bank reconciliation using AI.
Cons
- Higher starting price
- Can overwhelm beginners
- There are certain enhanced features that are locked.
Who Should Use Xero
Suitable to the needs of seasoned accountants, SMEs, businesses with regular billing that require MTD-ready, AI-enhanced accounting software with solid integrations.
2025 Updates
Greater automation of AI, multi-currency reporting, and finance management insights.
Vic.ai
Vic.ai AI accounting software is an AI-based computer-based program designed to automate accounting and financial procedures of mid-sized and large companies. It is fully Making Tax Digital (MTD) compliant and is dedicated to accounts payable, which involves less manual entry of data and denies real-time financial insights.
Vic.ai is a high-quality AI accounting software that assists the business in automating invoices processing, approval procedure, cost analysis, and is compatible with popular ERP and accounting software.
Key Features
- High accuracy autonomous invoice processing.
- Real-time cost analytics
- Automated approval processes.
- Accounting system integration and ERP.
- Forecasts of expenditure behaviour.
Pricing (UK)
Pricing (personally crafted plans depending on enterprise requirements) Contact Vic.ai.
Pros
- Wholly VAT and financial reporting compliant.
- Automation AI-based accounts payable.
- Financial insights in real-time.
- Seamless ERP integration
Cons
- Business oriented, not small business friendly.
- Prices are to be quoted upon demand.
- First time users learning curve.
Who Should Use Vic.ai
Ideal mid-sized to large company that needs to automate the process of paying its suppliers, eliminating manual work, and gaining actionable financial data.
2025 Updates
Greater AI-based predictive analytics and better cloud ERP system integration.
Sage Intacct
Sage Intacct AI accounting software is a digital accounting application (UK based) that is growing in the UK to support UK based businesses. This AI accounting software is completely Making Tax Digital (MTD) compliant and automates bookkeeping, VAT returns, and financial reporting and allows multi-entity consolidation.
It is suitable in the mid-sized to large firms because it provides automation in the accounts payable/receivable, cash/order management, real-time dashboards, and artificial intelligence-driven insights.
Key Features
- Automation of accounts payable and receivable.
- Cash and order management
- Multi-entity consolidation
- Dashboards and reporting in real time.
- Artificial intelligence-based financial intelligence.
Pricing (UK)
- Accounting Start: £18/month
- Accounting Standard: £39/month
- Accounting Plus: £59/month
Pros
- Completely MTD-compliant in regards to VAT and Income Tax.
- Artificial intelligence-based routine work.
- Ranges to mid and large company.
Cons
- A little less modern interface in comparison with some competitors.
- Limited number of bulk contact or expense import.
Who Should Use Sage Intacct
Medium to large size businesses, finance departments that require multi entity management, accountants that require sophisticated reporting and automation.
2025 Updates
Improved AI capabilities of categorisation, forecasting, and automation in Sage Business Cloud.
FreshBooks
FreshBooks is an AI accounting software designed for use by small UK businesses and self-employed individuals. It is a cloud-based digital programme, compliant with all specific requirements from Making Tax Digital (MTD), and streamlines invoicing, expense tracking, time logging, and financial reporting details.
FreshBooks is an ideal practice management consultant, a freelancer, or service-based business, with helpful project tools, mobile access, and automated integrations. It AI accounting software features automate expense classification and identify actionable insights.
Key Features
- Invoicing and quotes
- Expense control
- Time tracking
- Project organization
- Financial marketing
Pricing (UK):
- Lite: £6/month
- Plus: £10/month
- Premium: £20/month
- Select: Custom at request
Pros
- Easy to navigate
- Quick invoicing and time tracking
- Mobile friendly
- AI for expenses
Cons
- No detailed tax in the UK.
- Not for advanced accounting.
Who would use FreshBooks
Freelancers, creatives, or small business owners looking for simple accounting, invoicing, and financial insights with AI-driven features.
2025 Updates
Improvements to AI expense categories, improvements for mobile experience, and automation for invoices and payments needed every month.
NetSuite by Oracle
NetSuite is AI accounting software. It’s a cloud-based system designed for medium to larger businesses in the UK. It is MTD (Making Tax Digital) compliant, provides automation for accounting, customer relationship management (CRM), inventory management, dashboards with real-time information, and multi-currency tax compliance.
This AI accounting software offers anomaly detection that is AI-driven, along with automated revenue recognition and pre-emptive cash flow management. These features are designed to reduce errors in accounting, support accounting professionals in making financial decisions, and simplify complex business processes for accounting teams.
Key Features:
• Financial planning & budgeting
• Multi-currency & tax compliance
• Automated revenue recognition
• Real-time performance dashboards
• Integration with various business apps
Pros
• Scalability for large enterprise companies
• Automated, accurate AI-powered analytics
• Unified financial management
Cons
• Somewhat complex for small businesses
• Useful features may come with a higher overall cost
Who Should Use NetSuite
Any medium to larger size UK business and finance team looking for AI accounting software for complex accounting and near real time financial insights.
2025 Updates
AI updates will include more features for anomaly detection, predictive analytics and efficiencies to improve automation throughout financial workflows.
Trullion
Trullion is a cloud-based AI accounting software for UK companies that specializes in financial compliance, revenue recognition, and lease accounting. It automates contract data extraction and audit trails for correct reporting and is fully compliant with Making Tax Digital (MTD).
Trullion’s AI accounting software capabilities, which include automatic data extraction, real-time compliance, lease and revenue recognition, and transparent audit trails, make it the perfect choice for businesses managing large volumes of leases and contracts.
Key features:
- Extraction of data using AI.
- Monitoring compliance in real-time.
- Automated lease recognition and revenue recognition.
- Creation of audit trails.
Pros
- Minimises data entry work by hand.
- Ensures compliance with IFRS and US GAAP.
- Streamlines workflows for lease accounting.
Cons
- A specialized product, not for general accounting.
- Possibility of needing training for configuration which is complex.
Who Should Use Trullion
Trullion is great for any business that has a lot of leases, contracts and/or complex revenue streams and wants to use AI accounting software for automated compliance.
2025 Updates
Trullion will provide enhanced AI extraction, compliance monitoring, and auditing features which are automated, for fast and accurate financial reporting.
Botkeeper
Botkeeper is AI accounting software that operates on the cloud and brings together human technology and expertise for authorized UK accounting firms. It is fully Making Tax Digital (MTD) compliant and automates various aspects of bookkeeping, data entry, and transaction management for firms while providing real-time analysis.
Botkeeper’s AI accounting software is best suited for firms that help clients manage multiple entities. It offers automated categorisation, reconciliation, and custom reports to liberate manual work and add accuracy at the client level.
KEY FEATURES:
- Automated Accounting & Data Entry
- Dashboards and reporting in real time
- AI-driven Transaction Management
- Quickbooks & Xero integration
PROS
- Eliminate manual bookkeeping
- Scales easily for multiple users
- AI continually learns for accuracy
CONS
- Not ideal for a one-person business
- Will need to be set up for best performance
Who Should Use Bookkeepers
Advisors and bookkeepers wanting AI accounting software to scale up their practice efficiently and accurately.
2025 Updates
New AI algorithms, enhanced reporting, and smarter transaction categorisation will allow for faster and more accurate bookkeeping.
Sage for Accountants
In the UK, small and medium-sized accounting offices can use Sage for Accountants, a cloud-based AI accounting software program. It fully conforms with Making Tax Digital (MTD) and automates bookkeeping, VAT submissions, and financial processes using AI-powered insights.
Sage improves client cooperation, accounting, and expenditure management, making it the perfect tool for accountants and businesses. Teams can concentrate on advising work by using its AI accounting software products, such as Sage Copilot, to undertake repetitive duties.
KEY FEATURES:
- Workflow and client management
- Tax automation and MTD compliance
- Current financial information
- Intelligent expenditure tracking and reconciliation
- Tools for tasks and billing
PROS
- Reliable UK brand
- Copilot, an AI assistant, was incorporated.
- Complete MTD adherence and UK payroll
- Practice workflows that are more efficient
CONS
- Interface older than some rivals
- Legacy components are included in Sage 50.
Who Should Use Sage for Accountants?
Accounting organizations looking to automate compliance, boost budgeting, and improve collaboration should use Sage for Accountants’ AI accounting software.
2025 Updates
Improved AI capabilities and increased automation in Sage Business Cloud provide quicker classification and more accurate forecasting.
How to Choose the Best AI Accounting Software
Choosing the best AI accounting software can increase accuracy and streamline your accounts. Here’s what to search for:
1. Identify Your Needs:
Choose if you require complete bookkeeping automation or just basic VAT filing.
2. Establish a budget:
By weighing the things that your company actually requires against the cost.
3. Confirm the scalability of the system:
Select a system that allows for growth with your business
4. Examine the integrations:
Make sure that integration exists with your bank, CRM, or payment systems.
5. Put Usability First:
Select a system that is easy to use and require less human error.
6. Have an Eye on AI Features:
Look for automated schedulers, automated workflows, and analytics capability.
7. Ensure Security & Compliance:
Ensure that you have robust data security and compliance with MTD.
8. Try Before You Buy:
Take advantage of free trials to see how well the AI accounting software suits your needs.
The Future of AI Accounting Software
- AI as Advisor: Predictive cash flow, AI-driven insights, and intelligent alarms.
- Payment integration: includes smooth bookkeeping, automated bank feeds, and the receipt of payments. cash flow, AI-driven insights, and intelligent alarms.
- Real-Time Tax: Constant MTD adherence to ITSA and VAT regulations.
- Open banking: Live transactions, automated approvals, and integrated financing tools are all its features
Conclusion
Selecting the best AI accounting software helps UK companies remain Making Tax Digital (MTD) compliant while bookkeeping, invoicing and financial reporting processes becomes much easier. Whether using beginner-focused FreshBooks, or enterprise-level solutions like NetSuite and Sage Intacct, using AI tools saves time, reduces errors and allows for real-time information. Choosing software with the right features, and that is scalable and integrates with your other tools will make financial management easier and allow for the business to grow.
