When you are managing a business, you have to be prepared to make tough choices. This is also true when you have to select an online accounting solution, especially if two options of interest are quite similar to each other. Xero and FreeAgent are coming from the opposite sides of the world yet they offer roughly the same features: invoicing, estimating, quotes, projecting and many more. Seemingly the only difference is in their pricing plans: Xero has three of them, while FreeAgent only has one. But one thing is sure: you will make a good choice and earn a trustworthy friend.
|Free Trial||Free Trial||Free Trial|
|Time Sheet Sharing|
|Multiple Tax Rates|
|Windows Mobile App|
|Integrations & Extra Services|
|Paper Invoice Service|
|Credit Card Payments|
|1 Month Plan||$9/mo||$24/mo|
|3 Months Plan||n/a||n/a|
|6 Months Plan||n/a||n/a|
|1 Year Plan||n/a||$20/mo ($240)|
|Free Trial||30 days||30 days|
|Headquarters||New Zealand||United Kingdom|
Xero, founded in New Zealand in 2006, is the trustworthy companion of over 600k sole proprietors and small businesses around the world. The software, praised by many, has everything a successful business owner needs: invoicing, billing, expenses, projects, time tracking, quoting, estimating, inventory, automated reports and even 1099s. Furthermore, there is a unique feature of invoicing that lets you see the exact moment your invoice was received, opened and paid. When enabled, you can have customers pay your invoices in an instant with the fast payment option. Multi-currency is also supported by Xero, although only in the top product of the company. The force is strong with the third party services and applications too as over 400 of them can be integrated into Xero; and this list will definitely grow as the company supports and offers an API.
Xero is present on all mobile platforms – Android, iOS, Windows Phone -, therefore you can manage your business even when you are out of office. Furthermore, with the aid of the clever receipt capturing feature you can quickly process receipts by using your mobile device’s camera. The company has a stellar customer support ready to answer your questions 24/7. The trial period of the software is 30 days. After that you can choose from three pricing packages: Starter for $9 per month which unfortunately limits invoicing, billing, bank reconciliations; Standard for $30 per month; and Premium for $70 per month which not only includes everything from the Standard package, but multi-currency as well. However, the monthly subscription fee is reduced by 30% for 6 months, but only if you are 1) a new client 2) you are not migrating your data from QuickBooks.
FreeAgent is the neat online accounting solution for 40,000 sole proprietors and smaller businesses, especially for those who reside in the UK. Despite the relatively low number of users, FreeAgent is a decent choice for these businesses as it knows the most essential features and more: easy-to-create invoices, estimates, expenses in different languages and with different currencies, and automated report building and bank reconciliation just to name a few. There is also a simple project management feature with a stellar built-in time tracking software with which you can send invoices that include billable and unbillable time. If you are a sole proprietor, FreeAgent is capable of creating and filing your 1040s for sales taxes, too.
The service can be integrated with 30 third party software solutions, but it also offers and supports an API. If you have to manage your business outside your office and you don’t have time to access your account from your computer, you can do the work by using the handy mobile application available for iOS and Android platforms. When you decide to try out the services of FreeAgent, you get a 30-day trial that also includes the fully functional software and free customer support. After the trial period you can upgrade to the one plan that is available on two different billing cycles: the monthly subscription is $24 per month, reduced by 50% for the first 6 months, while the pre-paid annual plan costs $20 per month.
Like we mentioned before there is virtually no difference between Xero and FreeAgent, if we put aside their pricing plans. Xero is the better known solution with over 600k satisfied users worldwide. For an affordable and customizable pricing you get software that knows everything from invoicing to time tracking and filing 1099s. Furthermore, you will be entitled to enjoy Xero on your mobile device regardless of the platform, get help from the customer service 24/7, integrate your account with over 400 third party apps. You can test all of this yourself during a 30-day free trial. FreeAgent, developed for UK clientele, also has everything you need to successfully run a business: invoicing, quoting, filing 1040s and a clever time tracker. Through the sole pricing plan you get mobile applications, integration with 30 third party software and a well-prepared customer service with phone, chat, email support, tutorials, and webinars.