FreeAgent vs Xero Bills

FreeAgent is accounting software for business administration, invoicing, expenses, tax reporting and business reports. It builds real-time accounts from bank statements, invoices and expenses, with Profit and Loss, Balance Sheet and Trial Balance reports. Users can create recurring invoices, automate late-payment reminders, turn estimates into invoices and accept payments through Stripe and PayPal. FreeAgent can generate MTD-compatible VAT returns and file them directly to HMRC; payroll calculates PAYE and National Insurance and can submit Real Time Information payroll to HMRC. Its iOS and Android apps cover expense recording, time tracking, invoice management and bank transaction reconciliation. It supports bank feeds from most UK banks via Open Banking and connections to HMRC for MTD VAT. The software is designed for small businesses, accountants and bookkeepers. A free plan is listed, alongside paid plans such as Sole trader at £10 a month and Limited company at £33 a month. Smart Capture includes up to 10 receipts and bills per month as standard; a paid Unlimited add-on removes that cap.

Xero Bills is a paid accounting product with mobile apps for Android and iOS. Listed functions include bank feeds, automated reconciliation, invoice creation, receipt capture, inventory tracking and accountant access. The Early plan costs $25 a month and includes 20 invoices and 5 bills. Growing costs $55 a month and includes a 60-day cash-flow forecast. Established costs $90 a month and includes a 180-day cash-flow forecast. Each subscription auto-renews monthly. There is no free plan. The product is associated with Xero Bills, headquartered in Melbourne, Australia, and the maker was founded in 2006. These plan details state the included invoice and bill allowance on Early and the forecast periods on the two higher plans. Mobile availability is listed for both iOS and Android.