Managing your finances is one of the most important parts of running a courier business.
Whether you’re self-employed or running a company, having the right accounting software can save you time and money. This guide explains how to choose the right tools for the job, with a look at some of the most popular options available.
What we’ll cover
Sole trader vs limited company: what you need to know
Your accounting responsibilities depend on whether you’re a sole trader or a limited company.
If you’re a sole trader, you’ll need to handle self-assessment tax returns and keep track of your income and expenses. You only pay tax on your profits, but clear records make it much easier to calculate this.
Limited companies have additional requirements, including filing corporation tax returns, annual accounts, and keeping records for shareholders. VAT registration is mandatory if your turnover exceeds £85,000, so you might also need to keep VAT records.
No matter your business structure, choosing the right accounting tool (with features like invoicing, expense tracking, and VAT filing) can help you stay on top of your obligations.
What features should you look for in accounting software?
The best accounting software for courier businesses should be simple to use, mobile-friendly, and tailored to the needs of owner-drivers.
These are the features to look for:
- Automated invoicing and expense tracking: Save time by automating common tasks like sending invoices and recording expenses.
- Mileage tracking: For couriers, mileage claims can form a big part of your expense deductions. Look for software that makes it easy to track this.
- VAT management: Tools with built-in VAT tracking and submission to HMRC can simplify compliance if you need to register for courier VAT.
- Integration with Courier Exchange: Some tools work seamlessly with courier platforms like CX, helping you keep all your data connected.
Now, let’s review the top options and how they meet the needs of UK courier owner-drivers.
The best accounting software for courier businesses
Xero
Xero is a popular accounting software option for small businesses. Its simple interface, mobile app, and powerful features make it a great fit for courier owner-drivers.
Features for couriers:
- Mobile invoicing and receipt capture.
- Mileage tracking with integrated apps.
- Customised reports to monitor income and expenses.
CX integration: Xero connects directly with Courier Exchange, making it easy to manage payments and track financial performance alongside job management.
Pricing: Plans start at £16 per month, with a 30-day free trial available.
QuickBooks
QuickBooks is another excellent choice for couriers, especially if you’re just starting out. It’s easy to set up, and the mobile app allows you to manage your accounts on the go.
Features for couriers:
- Real-time cash flow updates and reminders.
- Mileage tracking tailored for UK self-employed users.
- Tools to prepare for self-assessment and VAT submissions.
CX integration: Like Xero, QuickBooks works with Courier Exchange to simplify financial management for couriers.
Pricing: Plans start at £10 per month, with a one month free trial available.
Zoho Books
Zoho Books is a budget-friendly accounting tool for small businesses. It’s less complex than some competitors but still offers useful features for couriers.
Features for couriers:
- Basic expense tracking and invoicing.
- Project tracking for businesses with multiple contracts.
- Automatic bank feeds for real-time transaction updates.
Pricing: Plans start at £12 per month.
Clear Books
Clear Books is designed specifically for UK businesses. It’s straightforward to use and integrates well with HMRC systems for VAT submissions.
Features for couriers:
- Simple VAT management tools.
- Invoicing templates with custom branding.
- Clear reporting for tracking income and expenses.
Pricing: Plans start at £13.50 per month.
Sage Accounting
Sage is a trusted name in the UK for accounting. It offers powerful tools for small businesses that need comprehensive financial management.
Features for couriers:
- Advanced reporting for growing courier companies.
- Robust VAT compliance tools.
- Mobile app for managing accounts on the go.
Pricing: Plans start at £15 per month.
Our recommendations
For a small courier business, the best options are Xero or QuickBooks. Both are user-friendly, packed with features, and integrate with Courier Exchange.
- Xero is ideal if you want detailed reports and flexible tools to manage VAT or corporation tax.
- QuickBooks is a better choice if you’re a sole trader or just starting out, thanks to its lower cost and excellent support for self-assessment.
Both platforms offer free trials, so you can try them before making a decision.
Choosing the right accounting software is an investment
Good accounting software doesn’t just help you comply with tax laws. It also gives you valuable insights into your business performance, and helps you better understand your costs and profit margins.
Besides, by keeping your accounts organised, you get to spend less time on admin and more time growing your courier business.
If you haven’t already tried them, take advantage of free trials offered by Xero and QuickBooks.
And if you’re already using Courier Exchange, integrating your accounting tools will make managing your finances even easier.
Start using the right tools today and see the difference they can make for your business.
