FreeAgent

Overview

FreeAgent builds business accounts from bank statements, invoices and expenses, with reports including Profit and Loss, Balance Sheet and Trial Balance. For a small business owner, that means routine records and a view of business performance live in the same system. Bank feeds from most UK banks use Open Banking, which can cut down on manual transaction entry.

The product also covers recurring invoices, expenses, time tracking and tax tasks. Its iOS and Android apps support expense recording, invoice management, time tracking and bank reconciliation, so core admin is not confined to a desk. FreeAgent launched in 2007 and is headquartered in Edinburgh, Scotland.

Key features

Invoicing, expenses and payments

Users can create recurring invoices, turn estimates into invoices and automate reminders for late payments. Customers can pay through Stripe or PayPal. That is a useful end-to-end invoicing workflow for a small operation, rather than just a way to produce bills. Expense tracking is included, but Smart Capture handles only up to 10 receipts and bills per month as standard. Businesses with higher volumes need the paid Unlimited add-on, priced at £5.00 per month, excluding 20% VAT.

Tax, payroll and integrations

FreeAgent can prepare MTD-compatible VAT returns and file them directly to HMRC; Self Assessment and end-of-year filing are also offered for relevant business types. Payroll calculates PAYE and National Insurance and can submit Real Time Information directly to HMRC. The cash-basis option excludes both Stock and Payroll, a material limitation for businesses that need either capability.

FreeAgent lists partner integrations and connections to HMRC for MTD VAT. It cautions that third-party integrations are built and supported outside the company, so users should not expect FreeAgent to resolve every integration issue. Security measures include HTTPS and TLS 1.2 for data in transit, 256-bit AES encryption for stored data, certified data centres (ISO 27001, 27017 and 27018) and Cyber Essentials Plus certification. UK-based support accountants can be contacted online or by phone.

Pricing

Pricing depends on business type, and optional add-ons can add to the bill. The plans include a 30-day trial. A free plan is priced at £0.00 per free, billed monthly. A separate bank-account-funded account is also £0.00 per free while eligible conditions are met: the user must retain a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or have a Mettle account with at least one transaction per month. Optional add-ons may still cost extra.

Published monthly plan prices include Sole trader at £10.00 per month, Partnership or LLP at £19.00 per month, and Limited company at £33.00 per month. A separate monthly offer lists Landlord at £5.00 per month, Sole trader at £9.50 per month, Partnership or LLP at £13.50 per month, and Limited company at £16.50 per month. Each of those offer prices is 50% off for the first six months, then renews at respectively £10, £19, £27 and £33 per month; prices exclude 20% VAT. Optional add-ons may cost extra.

Annual offers list Landlord at £50.00 per year and Sole trader at £95.00 per year, each 50% off for the first year, then £100 and £190 per year respectively. Prices exclude 20% VAT, and optional add-ons may cost extra. These lower introductory prices suit readers prepared to accept the renewal increase; compare the regular rate against the monthly plan before committing. The Landlord plan also offers an optional Smart Capture Unlimited add-on at extra cost.

Platforms

FreeAgent runs on the web and has apps for iOS and Android. The mobile apps cover expense recording, time tracking, invoice management and bank transaction reconciliation.

Who it's for

FreeAgent makes most sense for UK small businesses, sole traders and partnerships that want bookkeeping, invoicing and HMRC-related work together, as well as accountants and bookkeepers serving them. It is a less suitable choice for a cash-basis business that needs Stock or Payroll, or one that routinely processes more than 10 receipts and bills monthly but does not want an add-on.

Pros and cons

• Pro: Bank feeds, accounts and standard financial reports sit alongside invoicing and expenses, reducing the need to split core bookkeeping work across separate tools.
• Pro: VAT filing to HMRC and payroll submissions are built into relevant workflows, useful for UK businesses managing those obligations.
• Pro: iOS and Android apps cover several practical admin tasks, including reconciliation and time tracking.
• Con: Smart Capture is capped at 10 receipts and bills per month unless users pay for Unlimited.
• Con: Cash-basis accounting excludes Stock and Payroll, ruling it out for some businesses even if the rest of the accounting workflow fits.
• Con: Third-party integration support sits with the integration providers, which can complicate troubleshooting across connected services.

Alternatives

SaaS Accounting Software is a useful broader comparison if FreeAgent's business-type plans do not fit. For invoice-focused needs, compare the Freelance Invoicing Software category; readers in specific industries can also browse Gym Accounting Software or Salon Accounting Software. The Bookkeeping Software list is relevant when bookkeeping is the main requirement.

Choose Zoho Books instead if its free plan suits a solopreneur or micro business with annual revenue below $50K and a one-user, one-account setup. Odoo Accounting is another freemium option with a free one-app plan and web, mobile and self-hosted platforms. For inventory-led work, Zoho Inventory has a free tier capped at 50 orders per month, one user and one location. Akaunting offers cloud plans starting at $12.00 USD per month for one company, one user plus one accountant, 1,000 invoices and four included apps.

Zuora CPQ, Accounting Seed, Ordway and Rillet are alternatives with custom pricing.

Verdict

Choose FreeAgent if you run a UK small business and want bank-fed accounts, invoicing, expenses and HMRC workflows together, with mobile access and support from UK-based accountants. Look elsewhere if cash-basis accounting must coexist with Stock or Payroll, or if the standard Smart Capture quota is too low and you do not want another monthly charge.