The online application, which is called Brightbook, developed by James Henderson and Warwick Leicester, was born out of their mutual frustration with existing "confusing and expensive" bookkeeping software.

Henderson said Brightbook is aimed at small business owners who can use the secure online package to create invoices and track payments.

The software is not intended as a full accounting package, however, it can export data to common accounting software, including Sage.

According to Henderson, this will save money even for business owners who use an external accountant, as it will reduce the amount of time it takes the accountant to prepare the company's accounts.

Henderson said that he planned to introduce fee-based features and paid options in the future, "as well as subtle advertising".

For more information, see www.brightbook.co.uk.