Plenty of freelancers begin with a spreadsheet and a folder of receipts. It works, up to a point. The real question is not whether you can get by without accounting software, but when the cost of doing without it overtakes the cost of having it. This guide helps you decide.
What a spreadsheet does well
A spreadsheet is free, flexible and familiar. If you send a handful of invoices a month, have few expenses and work with one or two clients, it can be enough. You can list income and costs, and add a column for the tax rate.
Where spreadsheets start to hurt
- Chasing payments. You have to remember which invoices are unpaid and how long they have been outstanding.
- Errors. One broken formula or a missing row changes your profit, and nothing warns you.
- No bank link. You re-type what is already on your statement and cannot easily prove the totals match.
- Receipts. They live in drawers, email and photos, not next to the transaction.
- Handing over. Your accountant has to untangle your layout every year.
- Tax rules. VAT and Making Tax Digital need records kept in a particular way.
Signs it is time to switch
- You spend more than an hour or two a month on bookkeeping.
- You are close to the VAT threshold or already registered.
- You find yourself asking “who still owes me money?”.
- You are likely to fall within Making Tax Digital for Income Tax.
- You want to see profit and cash position during the year, not just at tax time.
What to look for in accounting software
- Invoicing with PDF and email, and credit notes for corrections.
- Bank import and reconciliation, ideally with rules that categorise repeat items.
- Reports you can export: profit and loss, balance sheet, cash flow.
- Tax support: VAT, and Making Tax Digital if it applies to you.
- Access for your accountant, with proper roles and permissions.
- Fair pricing, with a free trial and no long lock-in.
- Your data stays yours: check what happens to it if you stop paying.
What it costs
Online accounting software usually costs a few pounds to a few tens of pounds a month. Weigh that against the hours you save and the cost of mistakes or late payments. Many providers offer a free trial so you can see how it feels before paying.
Where AvrioBooks fits
AvrioBooks is double-entry accounting software built for small businesses, freelancers and their accountants. Plans start at £12 a month per business (Starter), with Standard at £25 and Premium at £36, all excluding VAT. Every new business gets a 30-day trial of everything in Premium with no card, and if you stop paying your books become read-only and your data is never deleted. See AvrioBooks for freelancers and our pricing to compare.
Frequently asked questions
Can I use a spreadsheet instead of accounting software?
Yes, for a small number of transactions. As volume grows, software saves time and reduces errors by linking invoices, bank lines and reports.
When should a freelancer switch to accounting software?
When bookkeeping takes more than an hour or two a month, you approach the VAT threshold, you lose track of unpaid invoices or Making Tax Digital applies to you.
How much does accounting software cost?
Plans vary. AvrioBooks starts at £12 a month per business for Starter, with Standard at £25 and Premium at £36, all excluding VAT.
Is there a free trial?
Yes. AvrioBooks gives you 30 days of everything in Premium with no card needed.
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