Softwr

Accounting · head to head

FreeAgent vs Xero

FreeAgent logo

FreeAgent

Accounting

Accounting software for small businesses and freelancers

From
Free
Rated
-
Full reviewWebsite
Xero logo

Xero

Accounting

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Only FreeAgent has a free tier, so it costs nothing to try first.
  • Each has a real cost: FreeAgent introductory pricing shown is 50% off the regular rates; Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which FreeAgent and Xero actually diverge.

Attributes where FreeAgent and Xero differ
AttributeFreeAgentXero
Starting priceFree$13/month
Free tierYesNo
PlatformsWebWeb, Ios, Android, Api
FoundedUnknown2006

Identical on both: pricing model (subscription), user rating (Not yet rated), category (Accounting).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in FreeAgent

Nothing recorded that Xero does not also cover.

Only in Xero

  • Bank reconciliation
  • Invoicing
  • Bill payment
  • Expense claims
  • Financial reporting
  • Inventory tracking
  • Project tracking
  • Mobile apps

What people use each for

The jobs each tool is most often brought in to do.

FreeAgent

  • Submitting VAT and Self Assessment tax returns to HMRC directlynot Xero
  • Splitting rental income and expenses across multiple properties automaticallynot Xero
  • Collecting invoice payments faster through one-click payments and remindersnot Xero
  • Capturing bills and receipts via AI to auto-categorize expensesnot Xero
  • Filing Real Time Information payroll directly to HMRC for employeesnot Xero

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot FreeAgent
  • Bill payment and purchase order managementnot FreeAgent
  • Sharing books with an accountant or bookkeepernot FreeAgent

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

FreeAgent

  • Introductory pricing shown is 50% off the regular rates
  • All prices exclude 20% VAT
  • Add-ons required for some features (Smart Capture Unlimited £5/month, Amazon integration £6/month)

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

Pricing, plan by plan

FreeAgent

Free
  • Sole Traders$9.5/month
    • Introductory rate (regular price £19/month)
    • Annual option at £95/year (regular £190)
  • Landlords$5/month
    • Introductory rate (regular price £10/month)
    • Annual option at £50/year (regular £100)
  • UK Partnerships/LLPs$13.5/month
    • Introductory rate (regular price £27/month)
    • Annual option at £135/year (regular £270)
  • UK Limited Companies$16.5/month
    • Introductory rate (regular price £33/month)
    • Annual option at £330/year (regular £330)

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

Which should you pick?

Choose FreeAgent if

  • You want to start without paying.
FreeAgent review

Choose Xero if

  • You need bank reconciliation.
  • You work on Web, Ios, Android, Api.
  • You also want invoicing.
Xero review

Questions people ask

Is FreeAgent or Xero better?
Neither clearly leads. FreeAgent starts at Free and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, FreeAgent or Xero?
FreeAgent has a free tier; the other does not. Paid plans start at Free for FreeAgent and $13/month for Xero.
Does FreeAgent or Xero run on more platforms?
FreeAgent runs on Web. Xero runs on Web, Ios, Android, Api.
Can I use FreeAgent for free?
Yes. FreeAgent has a free tier, so you can try it without paying. Xero starts at $13/month.
What is FreeAgent best used for?
FreeAgent is most often used for submitting vat and self assessment tax returns to hmrc directly, splitting rental income and expenses across multiple properties automatically, collecting invoice payments faster through one-click payments and reminders, capturing bills and receipts via ai to auto-categorize expenses. Of those, submitting vat and self assessment tax returns to hmrc directly and splitting rental income and expenses across multiple properties automatically are not what Xero is typically brought in for.
What can FreeAgent do that Xero cannot?
Xero covers Bank reconciliation, Invoicing, Bill payment, Expense claims.

Answered from the vendors’ own pages

FreeAgent: Does FreeAgent offer a free option?

FreeAgent is free for qualifying customers maintaining business accounts with NatWest, Royal Bank of Scotland, Ulster Bank, or certain Mettle accounts.

Source
FreeAgent: What is FreeAgent's pricing for sole traders?

Sole traders pay £9.50/month (50% introductory rate; regular £19/month), or £95/year annually (regular £190/year), excluding 20% VAT.

Source
FreeAgent: What add-ons does FreeAgent offer?

Optional add-ons include Smart Capture Unlimited at £5/month and Amazon integration at £6/month, allowing customers to extend base plan functionality.

Source
FreeAgent: Does FreeAgent offer a trial?

FreeAgent provides a 30-day free trial with no commitment, and customers can cancel at any time during or after the trial period.

Source
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