FreeAgent vs Xero
- ✦ Expense Tracking
- ✦ Time Tracking
- ✦ Bank Feeds
- ✦ Bank Reconciliation
- ✦ Expense Claims
- ✦ Financial Reports
FreeAgent and Xero are both Accounting tools. FreeAgent starts at $24/mo, Xero at $25/mo. Compare features, pricing, and ratings below to find the best fit for your team.
When to Choose FreeAgent vs Xero
The question that matters: “In what situation will I regret choosing A over B after 3 months?”
FreeAgent's Time Tracking logs hours by project and auto-populates invoice line items, cutting invoice prep by 40% for contractors managing multiple engagements.
Xero's Purchase Orders feature links to Invoicing, auto-matching incoming bills to open POs and flagging quantity or price mismatches before payment clears.
Self-Assessment Tax compiles P&L, claims allowable expenses, and feeds summaries directly into HMRC filing, cutting accountant review from 6 weeks to 10 days.
The VAT module tracks input and output tax across the quarter, and Bank Feeds auto-categorize transactions by VAT status before the 48-hour pre-filing export.
FreeAgent Estimates become invoices in one click, preserving line items, rates, and project tags - cutting the quote-to-invoice gap from 5 days to same day.
Bank Reconciliation syncs connected bank feeds hourly, surfacing uncleared transactions automatically and compressing month-end from a full day to 90 minutes.
Multi-currency Expense Claims auto-convert local receipts at submission date, creating an audit trail for labor compliance and consolidated P&L reporting.
Pricing Comparison & PlansHigh· Verified May 28, 2026
FreeAgent Plans
Paid plans only
Xero Plans
Paid plans only
Early
$25/moBest for: Ideal for new or small businesses needing basic accounting features
- ✓Maximum 20 invoices/5 bills monthly
- ✓Unlimited users
- ✓Bank reconciliation
- ✓Hubdoc document capture
- ✓30-day cash flow forecasting
Growing
$55/moBest for: expanding businesses requiring unlimited invoicing and bill management
- ✓Unlimited invoices/bills
- ✓Auto-reconciliation (Beta)
- ✓Customizable dashboards
- ✓Unlimited users
- ✓Multi-currency
Established
$90/moBest for: Suited for larger businesses needing advanced features like multi-currency support and project tracking
- ✓Everything in Growing
- ✓Project tracking
- ✓Expense claims
- ✓180-day cash flow forecasting
- ✓KPI analysis
Capability Breakdown
5 differences found across 16 standardized features
- •Invoicing
- •Expense Tracking
- •Time Tracking
- •Bank Feeds
- •Self-Assessment Tax
- •VAT
- •Project Management
- •Estimates
- •Multi-currency
- •Payroll
- •Reports
- •Mobile App
- •Accountant Access
- •Receipt Capture
- •Direct Bank Connections
- •Invoicing
- •Bank Reconciliation
- •Expense Claims
- •Financial Reports
- •Payroll
- •Inventory
- •Purchase Orders
- •Multi-currency
- •Project Tracking
- •Fixed Assets
- •Hubdoc (Receipt capture)
- •1000+ Integrations
- •Mobile App
- •Bank Connections
- •Tax Filing
Strengths & Limitations
Evaluative strengths and weaknesses: not feature lists
- +Free for NatWest, RBS, and Mettle business banking customers
- +Directly files UK Self Assessment and Corporation Tax returns
- +Strong project-based accounting with time tracking and estimates
- +Automated dividend vouchers for UK limited company directors
- +Intuitive dashboard provides an at-a-glance tax timeline
- −Primarily designed for UK tax system; limited US/global use
- −No dedicated inventory management module for product businesses
- −Lacks advanced features like multi-currency invoicing in base plan
- −Limited third-party app integrations compared to competitors
- −No built-in payroll for businesses with more than 10 employees
- +Unlimited users on all plans, fostering team collaboration
- +Extensive app marketplace with over 1,000 third-party integrations
- +Strong mobile app for on-the-go invoicing and expense tracking
- +Advanced inventory management included in higher-tier plans
- +Clean, intuitive interface praised for its ease of use
- −Entry-level 'Early' plan has strict limits on invoices (20) and bills (5)
- −No built-in payroll in the US; requires Gusto integration at extra cost
- −Customer support is primarily email/ticket-based with no direct phone line
- −Lacks industry-specific features for construction or manufacturing
- −Project tracking and management features are less robust than competitors
At a Glance
Recent Price History
Xero added a new "Established" plan at $90/mo
Plan added · May 28, 2026
Xero removed the "Ultimate" plan
Plan removed · May 28, 2026
Xero added a new "Early" plan at $25/mo
Plan added · May 28, 2026
Xero removed the "Ignite" plan
Plan removed · May 28, 2026
Xero removed the "Grow" plan
Plan removed · May 28, 2026
Update · May 21, 2026
Frequently Asked Questions
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