FreeAgent vs Xero: which should you actually choose?

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Short answer

Choose FreeAgent if UK freelancers and small limited companies filing UK Self Assessment/MTD. Choose Xero if small teams that need multiple people in the books without per-user fees.

Honestly, if US small businesses that work with an outside bookkeeper/accountant — consider QuickBooks Online instead, or start with our free tools below.

Side-by-side

—	FreeAgent	Xero
Starting price🏆 FreeAgent	From 10 GBP/mo	From 25 USD/mo
Free tierTie	No	No
Key features	Self Assessment and Making Tax Digital tools (UK) Project time tracking Unlimited users, clients, and invoices on the one plan Bank feeds Estimates and expenses	Unlimited users on every plan Bank reconciliation Multi-currency accounting Inventory tracking Project tracking Extensive third-party app marketplace
Integrations	VERIFY	VERIFY
PlatformsTie	web, ios, android	web, ios, android
Regional fit	UK-focused; built around UK Self Assessment and Making Tax Digital. Free for customers of certain UK banks (e.g. NatWest group, Mettle) — VERIFY current bank partnerships.	Originated in New Zealand; strong UK, Australia and NZ tax/MTD support with a growing US presence.
Best for	UK freelancers and small limited companies filing UK Self Assessment/MTD	Small teams that need multiple people in the books without per-user fees Businesses operating in multiple currencies

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Where FreeAgent wins

Single simple plan with unlimited users/invoices, no tier-shopping
Deep UK tax focus (Self Assessment, MTD) built for sole traders and small limited companies
Often free if you bank with certain UK banks (e.g. NatWest group, Mettle)

Where Xero wins

Unlimited users even on entry plans — unusual in this category
Clean, modern interface
Strong multi-currency and international support

Pricing as you grow

Costs diverge as you scale — the cheapest entry plan isn't always the cheapest plan you'll actually need.

Scale	FreeAgent	Xero
Solo / entry plan	From 10 GBP/mo	From 25 USD/mo
Growing team (highest published tier)	33 GBP/mo	90 USD/mo

Exact per-seat and add-on costs vary — always confirm current team pricing directly with FreeAgent and Xero before committing.

FreeAgent

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Xero

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Try free first

Not sure FreeAgent or Xero is worth paying for yet? Start with our free tools — come back when you outgrow them.

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Other comparisons

FreeAgent vs Xero FAQ

Questions about this tool

Is FreeAgent or Xero cheaper?

From 10 GBP/mo for FreeAgent, versus From 25 USD/mo for Xero. See the pricing table above for the full tier breakdown — the cheapest entry price isn't always the cheapest at the plan you'd actually need.

Which is better for freelancers, FreeAgent or Xero?

UK freelancers and small limited companies filing UK Self Assessment/MTD. Meanwhile, Xero: Small teams that need multiple people in the books without per-user fees. Check "Where each wins" above for the specific reasoning.

Can I switch from FreeAgent to Xero later, or vice versa?

Most accounting/invoicing tools support exporting your data (clients, invoices, transactions) to CSV, and many accountants can help migrate the books. It's rarely instant or free of friction, though — factor in migration effort when the choice is close, not just the monthly price.

Does FreeAgent or Xero have a better free tier?

FreeAgent: No permanent free plan — No free tier at list price, but often free for customers who bank with NatWest, RBS, Ulster Bank, or Mettle — confirm current bank partnerships. 30-day free trial otherwise, with a common 50%-off introductory rate for the first 6 or 12 months. Xero: No permanent free plan — No free tier — 30-day free trial. Plan names and prices differ by country (UK: Ignite/Grow/Comprehensive/Ultimate at different price points) — confirm the right regional page for your market.

Which works better outside the US, FreeAgent or Xero?

FreeAgent: UK-focused; built around UK Self Assessment and Making Tax Digital. Free for customers of certain UK banks (e.g. NatWest group, Mettle) — VERIFY current bank partnerships. Xero: Originated in New Zealand; strong UK, Australia and NZ tax/MTD support with a growing US presence.

What if neither FreeAgent nor Xero is right for me?

Worth a look: QuickBooks Online — The default choice for US small businesses that want their accountant to already know the software — shop the exact plan tier carefully, since it's rarely the cheapest option. Or start with our free tools below and upgrade only once you actually outgrow them.

Side-by-side

—	FreeAgent	Xero
Starting price🏆 FreeAgent	From 10 GBP/mo	From 25 USD/mo
Free tierTie	No	No
Key features	Self Assessment and Making Tax Digital tools (UK) Project time tracking Unlimited users, clients, and invoices on the one plan Bank feeds Estimates and expenses	Unlimited users on every plan Bank reconciliation Multi-currency accounting Inventory tracking Project tracking Extensive third-party app marketplace
Integrations	VERIFY	VERIFY
PlatformsTie	web, ios, android	web, ios, android
Regional fit	UK-focused; built around UK Self Assessment and Making Tax Digital. Free for customers of certain UK banks (e.g. NatWest group, Mettle) — VERIFY current bank partnerships.	Originated in New Zealand; strong UK, Australia and NZ tax/MTD support with a growing US presence.
Best for	UK freelancers and small limited companies filing UK Self Assessment/MTD	Small teams that need multiple people in the books without per-user fees Businesses operating in multiple currencies

Pricing as you grow

Costs diverge as you scale — the cheapest entry plan isn't always the cheapest plan you'll actually need.

Scale	FreeAgent	Xero
Solo / entry plan	From 10 GBP/mo	From 25 USD/mo
Growing team (highest published tier)	33 GBP/mo	90 USD/mo

Exact per-seat and add-on costs vary — always confirm current team pricing directly with FreeAgent and Xero before committing.