FreeAgent vs Xero – Which Accounting Software Is Better in 2024?

FreeAgent vs Xero

As a professional copywriting journalist, I’ve witnessed the ongoing debate between FreeAgent and Xero as the top accounting software in 2024. Accounting software comparison is an essential part of a business, hence, I decided to dive deep into both platforms to see which one reigns supreme. In this article, I will compare the features, pricing, ease of use, and integration capabilities of FreeAgent and Xero, helping you make an informed decision on which platform is best suited for your business needs.

Key Takeaways:

  • In this article, we’ll break down a comprehensive comparison between FreeAgent and Xero, the two most popular accounting software in 2024.
  • Features, pricing, ease of use, and integration capabilities of both platforms will be compared and analyzed.
  • By the end of this article, you’ll be able to make an informed decision on which accounting software is the best fit for your business.

The Rise of Cloud-Based Accounting Software

Oh hello there, fellow accounting enthusiasts! Let’s talk about the future of accounting software – online accounting tools and cloud-based accounting software. It’s 2024, and if you’re still clinging onto desktop software, it’s time to say goodbye to the Stone Age and join us in the modern era.

Why, you ask? Because online accounting software allows you to access your accounting information from anywhere, at any time, even while sipping on margaritas at a beach bar. Plus, it saves you the headache of manual data entry and provides a level of security that surpasses traditional methods.

Cloud-based accounting software has revolutionized bookkeeping for small businesses and freelancers, providing a level of flexibility and accessibility that was once only available to large corporations. By using a web-based system, you can access your accounting data from any device with an internet connection. That means you can work from home, your favorite coffee shop or even while traveling the world.

Exploring FreeAgent’s Features

Now, let’s dive into the nitty-gritty of FreeAgent and explore what makes it an excellent accounting software for freelancers and small business owners alike.

Firstly, FreeAgent has a user-friendly interface that makes it easy to navigate and use. No more fumbling around trying to figure out how to invoice or add expenses. With FreeAgent, everything is intuitive and straightforward, allowing you to focus on more critical aspects of your business.

One of FreeAgent’s standout features is its time-saving automation capabilities. From automated bank feeds to recurring invoicing and expense categorization, FreeAgent takes care of the grunt work, leaving you more time to focus on growing your business.

FreeAgent Features: Benefits:
Invoicing Simple and customizable invoicing process, automated reminders for late payments.
Bank feeds Automatically imports your transactions from multiple bank accounts, saving significant time and increasing accuracy.
Tax timeline Keeps you on track with important tax deadlines and what you need to pay, reducing stress and potential fines.
Time tracking Allows you to easily track your time spent on projects for accurate billing.

FreeAgent also offers comprehensive invoicing capabilities that are perfect for freelancers looking to streamline their processes. You can create and send invoices directly from FreeAgent, track payment statuses, and even set up automated reminders for late payments. Plus, FreeAgent provides an extensive range of customization options, allowing you to create professional-looking invoices that align with your brand.

All of these features have made FreeAgent one of the leading small business accounting tools on the market, and it’s easy to see why.

Xero’s Power and Versatility

Now, let’s shift our focus to Xero. As one of the most popular accounting software for small businesses, Xero is known for its powerful features and versatile functionality. Its list of features is impressive and can cater to the specific needs of small businesses across various industries. Let’s take a look at the standout features:

Feature Description
Dashboard The Xero dashboard provides a user-friendly interface with real-time financial reports. Users can customize their dashboard to display the most relevant data, including bank balances, expenses, and invoices.
Invoicing Xero simplifies invoicing with customizable templates and automated reminders. Users can set up recurring invoices and accept payments online. It also provides an option to track pending payments easily.
Inventory Management Xero inventory management features are helpful for small business owners who need to track their products’ stock levels and automate the reordering process.
Integration Options Xero has a wide range of integration options, such as Stripe, Paypal, Shopify, and many more. This enables users to streamline their workflows by automatically syncing data between Xero and third-party apps.
Reporting Xero delivers a range of reports, including profit and loss, balance sheet, and cash flow. These reports are essential for business owners’ financial analysis and decision-making processes.

Overall, Xero caters to small business owners who require robust accounting tools and integration options. The platform’s versatility means that it can be tailored to meet specific needs, and its powerful features enable users to streamline their finances efficiently.

FreeAgent vs Xero: Ease of Use and User Experience

Okay, folks, let’s talk about the user experience. After all, what’s the point of having all the bells and whistles if you can’t navigate your way around the platform? As someone who’s tried both FreeAgent and Xero, I can tell you this: they both have their strengths and weaknesses, and it ultimately boils down to personal preference and business needs.

Let’s start with FreeAgent. I have to say, it’s pretty darn intuitive. The dashboard is clean and easy to navigate, and the color-coded tabs make it simple to find what you need. The built-in help center is also a nice touch for beginners, providing step-by-step guides to various tasks. However, some users have reported that loading times can be slow, which can be frustrating when you’re on a deadline.

Xero, on the other hand, is a bit more robust in terms of features, but that can also make it a bit overwhelming at first. That being said, once you get the hang of it, the dashboard is customizable and user-friendly. The mobile app is also a stand-out feature, with all the functionality of the desktop version at your fingertips. However, some users have mentioned that the learning curve can be steep, so it’s important to take advantage of the training resources available.

Ultimately, choosing the right accounting software shouldn’t be a chore. Both FreeAgent and Xero have their pros and cons when it comes to the user experience, but it’s worth taking the time to test them out for yourself to see which one aligns with your business goals and preferences.

Pricing and Value for Money

Alright, now let’s talk about the big moolah – pricing and value for money. After all, we don’t want to break the bank, do we?

FreeAgent offers three plans – ‘Sole Trader’ for $12 per month, ‘Partnership’ for $24 per month, and ‘Limited Company’ for $24 per month, which can support up to two users. It also provides a 14-day free trial for those who want to take it for a spin.

On the other hand, Xero has three pricing models – ‘Early’ for $11 per month, ‘Growing’ for $32 per month, and ‘Established’ for $62 per month, which includes payroll for up to 10 employees. Additionally, users can opt for a 30-day free trial to get a taste of Xero’s features.

While both platforms offer competitive pricing plans, it’s important to consider the value for money aspect. FreeAgent’s plans come with a host of features that cater to small businesses and freelancers, such as automated bank feeds, custom invoices, and VAT return filing. Xero, on the other hand, offers robust accounting tools and scalable options that can support growing businesses with multiple employees.

The key takeaway here is that the pricing decision ultimately depends on the user’s specific business requirements and budget. Both FreeAgent and Xero offer value for money, but it’s essential to carefully analyze the available features and choose the plan that aligns with your business needs.

Bonus Tip: Keep an Eye out for Add-ons and Extra Costs

Before you hit that ‘subscribe’ button, make sure to check for any additional costs or add-ons that may be relevant to your usage. While both FreeAgent and Xero offer competitive pricing plans, some features may come at an extra cost. For example, Xero charges an additional $2 per month for each employee added to its payroll feature. Similarly, some third-party apps that integrate with these platforms may have separate pricing models. Keep an eye out for the fine print and make an informed decision.

Integration and Third-Party Apps

When it comes to integrating with third-party apps, both FreeAgent and Xero are neck and neck. They both offer a wide range of integrations with popular tools such as Stripe, PayPal, Shopify and more.

Xero also has an app marketplace with over 800 apps to choose from, whereas FreeAgent integrates with over 200 apps. However, the quality of integrations over quantity is what matters, and both platforms provide high-quality integrations that can streamline your workflows and save you time.

Integration FreeAgent Xero
Payment Gateways ✔️ ✔️
Payroll ✔️ ✔️
CRM ✔️ ✔️
Inventory Management ✔️ ✔️

“Integrating with your stack is like salt in a dish, it’s a small addition but it makes a world of difference!” – Anonymous

Overall, both FreeAgent and Xero have excellent integration capabilities and will integrate with most of your favorite apps. This is a key aspect to consider when making an accounting software comparison and it’s a tie between the two.

The Verdict: FreeAgent vs Xero in 2024

After thorough research and analysis, it’s time to answer the ultimate question – which accounting software is the best in 2024? FreeAgent or Xero?

Firstly, both platforms offer a range of impressive features that cater to the needs of small businesses and freelancers. FreeAgent’s user-friendly interface and automation capabilities make it a top choice for those seeking to save time on their bookkeeping tasks. On the other hand, Xero’s powerful reporting and integration options make it a versatile option for those who require more advanced accounting tools.

In terms of ease of use and user experience, both platforms have their strong points. FreeAgent’s dashboard is intuitive and easy to navigate, with clear categorization of tasks and a sleek design. Xero’s dashboard may take a bit more time to get used to, but its customizable layout allows users to prioritize their most important tasks.

When it comes to pricing and value for money, both platforms offer competitive subscription plans. FreeAgent’s pricing includes all of its features and allows for unlimited users, making it a great choice for growing businesses. Xero offers scalable pricing options and a range of add-ons for specific needs. However, it’s worth noting that Xero’s basic plan has transaction limits that may not suit every business’s needs.

Integration capabilities are also an important consideration for many businesses. Both FreeAgent and Xero offer a large number of third-party apps and integrations that can enhance productivity and streamline workflows. However, Xero’s integration capabilities are slightly more extensive and may appeal to those who require more advanced integrations.

So, without further ado, my verdict is…

Xero takes the crown as the best accounting software in 2024!

While both FreeAgent and Xero offer a range of impressive features and capabilities, Xero’s advanced reporting, integration options, and customizable dashboard make it the ultimate choice for growing businesses. Additionally, its scalable pricing and add-on options provide flexibility for businesses that have specific needs.

Of course, this decision ultimately depends on the specific needs and preferences of each business. However, after thorough analysis, Xero stands out as the top choice for the best accounting software in 2024.


Q: Can I use FreeAgent or Xero for personal accounting?

A: While FreeAgent and Xero are primarily designed for small businesses and freelancers, they can also be used for personal accounting. However, keep in mind that the features and pricing plans may be better suited for business use.

Q: Does FreeAgent or Xero offer payroll services?

A: Both FreeAgent and Xero offer payroll services as part of their premium subscription plans. These services can help you manage payroll, automate tax calculations, and generate payslips for your employees.

Q: Can I import my existing financial data into FreeAgent or Xero?

A: Yes, both FreeAgent and Xero provide options for importing your existing financial data. This can include bank transactions, invoices, expenses, and more. The importing process may vary, so it’s recommended to check the documentation or contact support for specific instructions.

Q: Are there mobile apps available for FreeAgent and Xero?

A: Yes, both FreeAgent and Xero offer mobile apps for iOS and Android devices. These apps allow you to access your accounting data on the go, manage expenses, send invoices, and even capture receipts using your smartphone’s camera.

Q: Can I switch from FreeAgent to Xero or vice versa?

A: Yes, it is possible to switch from FreeAgent to Xero or vice versa. However, the process may involve exporting your data from one platform and importing it into the other. It’s recommended to consult the documentation or seek assistance from customer support to ensure a smooth transition.

Q: Is customer support included with FreeAgent and Xero?

A: Yes, both FreeAgent and Xero offer customer support as part of their subscription plans. This can include email support, live chat, phone support, and access to help guides and documentation. The level of support may vary depending on the plan you choose.