FreeAgent
Xero
| Feature | FreeAgent | Xero |
|---|---|---|
| Pricing | From $14/mo | From $15/mo |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.3 / 5 | 4.4 / 5 |
| Best For | uk-freelancers, sole-traders, small-businesses, contractors | small-businesses, accountants, international-companies, uk-businesses |
| Founded | 2007 | 2006 |
| Invoicing | ✓ | ✓ |
| Expenses | ✓ | ✓ |
| Tax Returns | ✓ | ✗ |
| Bank Reconciliation | ✓ | ✓ |
| Time Tracking | ✓ | ✗ |
| Project Management | ✓ | ✗ |
| Reporting | ✗ | ✓ |
| Payroll Addon | ✗ | ✓ |
| Projects | ✗ | ✓ |
| Multi Currency | ✗ | ✓ |
✓ FreeAgent Pros
- Great for UK businesses
- HMRC compliant
- Easy invoicing
- Bank feeds
✗ FreeAgent Cons
- UK-focused
- Limited for larger businesses
- No inventory management
✓ Xero Pros
- Beautiful, modern interface
- Unlimited users on all plans
- Strong in UK, Australia, NZ markets
- Excellent bank reconciliation
✗ Xero Cons
- Fewer integrations than QuickBooks in US
- Payroll is a paid add-on
- Inventory management is basic
The Verdict
FreeAgent is built for uk freelancers and sole traders, with a focus on invoicing and expenses. Xero targets small businesses and accountants and leads with invoicing and bank-reconciliation.
Pricing is close: FreeAgent starts at $14/mo versus $15/mo for Xero — not a deciding factor on its own.
Neither tool offers a free plan, so factor the subscription cost into your decision from the start.
Feature-wise, Xero offers broader built-in capabilities (7 features vs 6), while FreeAgent takes a more focused approach — which can mean a simpler, faster onboarding experience.
Both tools are a solid fit for small businesses — in those cases, the decision often comes down to workflow style and how your team prefers to organize work.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.