FreeAgent Review – Is This The Best Accounting Software For Small Businesses?

Rated #1 Best UK Accounting Software

Overall Rating:

9.4

Ease Of Use = 9.8

Value For Money = 9.1

Customer Support = 9.4

Features = 9.2

Use our exclusive code and save an extra 10% on your subscription – FOR LIFE:

Your Referral Code = 4904ixil

FreeAgent Review [Updated For 2026] – With a very low monthly fee and a super intuitive UI that promises to be extremely easy to use FreeAgent is a cloud-based solution that aims to cater to small businesses as well as freelancers.

Here is an exhaustive and objective review that seeks to find out if that is true.

At a Glance

A quick overview of FreeAgent shows us that it is an online accounting platform with more than 100,000 users. Their customers appear quite happy and are mostly enjoying their experience if the number of positive FreeAgent reviews are to be believed. 

FreeAgent has basic accounting capabilities, international invoicing, project management, time tracking, and inventory among others. All this comes at the price of a flat monthly fee.

Here are four of the most popular features:

• Create, manage and send invoices directly from within FreeAgent
• Use the app to quickly manage your bookkeeping while ‘on the go’
• Automatically explain bank transactions and mark invoices as paid
• Stay on top of tax returns including sending self-assessments from the platform

For the monthly fee, you also get unlimited users and absolutely no limits on said features. Moreover, if you are a UK business owner, FreeAgent could prove to be the perfect solution for you because of its great VAT support. 

However, in the spirit of objectivity and fairness, it’s also important to note that this piece of software has negatives. For example, there are only a limited number of reports so if you like your data, you may be a little disappointed.

FreeAgent Review – Our Personal Experience

Here at Business4Beginners, we’ve been using FreeAgent since we formed our previous company back in 2014.

I have to say, even at that point, we fell in love with it almost immediately.

Back then, the options for keeping your books in order and submitting tax returns was very limited. Most people, including us, relied on manual record keeping and Excel spreadsheets.

FreeAgent was a game-changer. Suddenly, instead of spending hours on bookkeeping every week, we were spending minutes.

However, while they catered for sole traders well, limited companies only got limited features. For instance, there were no options for limited company tax returns or accounts.

By 2019, FreeAgent Was Unbeatable

After selling our previous company in 2016, we then had a few years where we didn’t have a need for an accounting software like FreeAgent.

But, in 2019, we started a new limited company to trade under when we re-acquired the Business4Beginners website. We immediately knew we needed to give FreeAgent another try.

I have to say, the difference was immense. If we thought it was good in 2016, it was even better in 2019 (and today, it’s improved further!).

Now there is full support for limited companies, including Corporation Tax, PAYE & NI and the ability to submit self-assessment tax returns from within the platform.

An All-In-One Accounting Tool

What we really love about FreeAgent is how we have been able to dispose of several other tools.

We now manage all of our expenses, dividends, PAYE, and self-assessment tax returns from within FreeAgent.

It hasn’t completely removed the need for an accountant (it’s still good to have everything checked over), but it has saved us significant sums of money on our accountancy bills.

In particular, we find there’s enough there for us to accurately manage our clients and suppliers. While there isn’t a ‘project management’ element to the software, we do use the contacts tab to help keep records of everyone we do business with and what their payment status is.

FreeAgent Gives Us A Perfect Overview

While the detail FreeAgent gives us is incredibly useful, our favourite thing about the tool is the clear overview you get of your business.

We can see, at a glance, how our profitability is looking, whether we need to be concerned about cash flow, when our tax submission and payment deadlines are (and how much we need to pay).

Plus, the FreeAgent Radar helps alert us to unpaid invoices, upcoming deadlines, and valuable insights such as which companies are the best and worst at paying invoices quickly.

It all comes together to help us better manage our company and finances, without spending lots of time analysing data. For that reason, we whole-heartedly recommend FreeAgent as our top pick for the best accounting software.

What Features Do FreeAgent Support?

When it comes to features, you will be delighted to find out that our FreeAgent review has found they do not disappoint. The best way to see the product in action is to start a trial.

Upon reviewing the features, we settled on some of the most interesting. Here they are:

• Invoicing – you get eight different invoice templates to which you can add your own logo and header.
• Expense tracking – you can import your bank statements or use live bank feeds. If you prefer it, you could also add your expenses manually.
• Chart of accounts – even though it is not fully-fledged.
• Accounts payable – manage and create bills, set recurring invoices, add bills to certain projects you are working on and create attachments for your existing ones.
• Inventory – be careful when navigating the app because with FreeAgent, they don’t call it ‘inventory’ per se, but the “Price List & Stock”. You will find it under Settings.

As already mentioned, these are just some of the features you will be able to enjoy if you choose the FreeAgent accounting software. However, they have many more to offer. If you wish to see them, please check out the FreeAgent website.

Keep in mind that one of the big advantages is that FreeAgent can be linked to most UK bank accounts. Once linked, it will reconcile transactions, making it really quick and simple to carry out your bookkeeping tasks.

Is FreeAgent HMRC Approved?

Yes, FreeAgent is approved by HMRC for MTD (Making Tax Digital). This means you can submit your returns directly to HMRC via your FreeAgent account.

The following returns can all be calculated, prepared and submitted to HMRC via FreeAgent:

VAT Returns (All Plans)

If you’re VAT registered, FreeAgent will automatically generate your VAT returns as you explain transactions in your books. These can then be filed with HMRC in just a few clicks.

Self-Assessment (Sole Trader & Limited Companies)

Gone are the days of needing seperate software to do your self-assessment. Up to 90% of your return can be populated automatically through the transactions you record through your day-to-day bookkeeping.

Each year, you simply review the return, add any missing information, then submit to HMRC without ever needing to leave the FreeAgent platform.

End of Year Accounts & Corporation Tax (Limited Companies)

If you qualify as a ‘micro-entity’ and are able to submit simpler accounts, FreeAgent allow you to do everything from within their platform.

A micro-entity is classed as any company that can claim at least 2 of the following:

• a turnover of £632,000 or less
• £316,000 or less on its balance sheet
• 10 employees or less

If this sounds like you, FreeAgent will automatically complete the forms required, helping save you hours on tedious admin. Of course, you’re still recommended to get everything checked by an accountant.

Is FreeAgent Cloud Based?

Yes, FreeAgent runs ‘in the cloud’. That basically means it is an online platform you login to when you have an internet connection.

The benefit of this is that you can login from any device and immediately get access to all your data. Plus, your data won’t be lost if your device is lost, stolen, or breaks down.

The downside is that you cannot access the platform when you do not have an internet connection.

Fees

If you are from the UK, where FreeAgent is based, they offer different packages, as follows (all prices were correct at the time of conducting our FreeAgent review)…

• If you are a Limited Company, the price is £16.50 + VAT per month for the first 6 months. After that, the price changes to £33 per month + VAT. You can also choose to pay annually for extra savings, which will cost £165 for your first year and £330 for each year after.
• If you are a Partnership or LLP, you will have to pay £13.50 per month + VAT for the first 6 months and £27 per month + VAT after that. Again, you can save with annual rates of £135 for your first year, then £270 for each year after.
• Sole Traders are charged £9.50 + VAT per month for the first 6 months and £19 + VAT per month after that. Or, £95 for your first year and £190 for each year afterwards.
• They also offer a landlord package (at £5 for the first 6 months, then a £10 monthly charge) or for accountants and bookkeepers which is charged on the number of clients you have.

In addition, FreeAgent also offer a free account to businesses that have a business current account with NatWest, Royal Bank of Scotland, Ulster Bank, for as long as you retain the account – or have a Mettle bank account and make at least one transaction a month. You may have to pay extra for add-on features depending on what you need from the platform.

No matter which plan you’re on, every single new customer gets 50% off in the first 6 months. Apart from that, the first 30 days are free for everyone, as a trial for the software. 

If you choose to pay annually, your 50% discount gets extended for an entire year, so you’ll get 12 months with 50% off instead of only 6 months (on the pay monthly option).

It’s also important to mention that FreeAgent has absolutely no set-up fees. Moreover, you can cancel your subscription anytime you choose and the platform will allow you to download your data.

Don’t forget! You can also save an additional 10% for life using our referral code (4904ixil).

FreeAgent Reviews From Customers:

Free Agent has a 4.6 Excellent rating on Trustpilot with over 2,500 reviews – 92% of which are rated 4 stars and above. They also reply to 100% of negative comments, showing that they are keen to rectify any issues and turn unhappy customers into happy ones.

On Capterra, Free Agent has a 4.4 overall rating, with average scores of:

• 4.4 for ease of use
• 4.5 for customer service
• 4.3 for features
• 4.3 for value for money
• And 8.6/10 customers would recommend Free Agent to others.

Most customers praise the customer service and how intuitive the app is to use, especially as it syncs with customers’ bank feeds. The platform gets very few negative reviews, and the ones it does get report individual errors (like duplicate entries or time-out errors) that are unlikely to be replicated across all users.

This is my first financial year using FA and I am very impressed. I love the recurring feature to save me adding in the same weekly mileage and expenses each week manually. I just upload receipts when ready! I was unsure how to submit at first, and used webchat 3 times. Each time I have been addressed promptly and professionally and the operator stays with you, talkng you through or screen sharing and they don’t go until you are completed. Would definitely recommend.

5-Star review from Rosie Ngym via Trustpilot

I am a massive fan of FreeAgent. There’s a bit of a learning curve for someone with minimal accounting experience, but the Customer Support is fantastic in helping to learn and in solving any issues. Once you get the hang of things, it’s really easy to use and is so much better than the alternatives. FreeAgent has saved me a lot of money by enabling me to do my own accounting and returns.

5-Star review from Callum via Trustpilot

At the moment it’s free through my business banking account – I tried it because of this but it would definitely be worth paying for. I am relatively new to running a business and the software is very intuitive for a novice. My accountant is pretty happy with it too, so that’s a big thumbs up! It makes invoicing and payment of exenses very easy, and is great for keeping track of money coming in/out and keeping an eye on invoices due for payment. Payroll is incorporated (you can file it with HMRC through FreeAgent or let your accountant do it separately). I also like the fact that it reminds me when my corporation tax and annual accounts are due. In a few clicks I can see my profit & loss account and my trial balance as well as spend in the different (customisable) categories. Really helps me keep on top of everything. The Android app is also great for reconciling payments and recording expenses on the move. The help files are fantastic, and the clear accounting descriptions and explanations make them a great resource for a small business even if you don’t use the software.

5 Star review from Anne on Capterra

FreeAgent TV Advert

The Advantages

It’s time to review and summarise all the benefits you get when using the FreeAgent software. And there are quite a few. 

FreeAgent was specifically designed to accommodate small businesses and help them navigate the sometimes intricate world of accounting. However, the great thing about it is that it can also fit contractors and freelancers as well. That is a major point in a changing world as ours where more and more people are choosing the self-employed path.

Another pro of the FreeAgent solution is that it is completely cloud-based. What does this mean for you, as a user? That you will have all the freedom and mobility you could possibly think of.

If you need to take care of a bill or invoice while on holiday from a beach and all you have is your phone, FreeAgent is the solution for that. All you need is a connection to the internet.

The platform itself is very easy to use. Setting up the account only follows a few basic steps, after which you will be required to link your bank accounts. FreeAgent guides you all the way with detailed instructions.

Not only that, but you can also customise the dashboard thanks to its movable cards to a more convenient layout.

The Disadvantages

One of the main cons when it comes to the FreeAgent software is the price. Some users report that the price is higher than for other solutions of the same kind. Though this can be offset by using our FreeAgent referral code (4904ixil) to save yourself 10% off your subscription fees for life.

And also, even though there are three different versions available, the UK one, the US one, and the Global one, they are not all developed the same. Seeing as they are based in the UK, this version has been developed the most.

That does not mean that the US version is not good. But more that you might find it lacking in some aspects.

However, it is worth mentioning that they do have a free option for NatWest, Royal Bank Of Scotland, Ulster Bank or Mettle business account users – so if you’re already signed up, it’s always worth trying out for free.

Does FreeAgent Have An App?

These days we all spend much of our ‘online time’ on our phones. While we can browse any online platform this way, the experience is often less than ideal.

That’s why you’ll be pleased to know that yes, FreeAgent does have a mobile app.

Available on both Android and iOS, the FreeAgent app is very solid and allows you to do all of your core daily bookkeeping tasks while on the move.

You can take photos of receipts and explain bank transactions to keep everything up to date. If you’re charging clients by the hour you can use the app to track your time. You can also create, manage, and send invoices to keep on top of your cashflow.

For some more complex tasks (such as submitting your self-assessment tax return), you’ll need to login to the main platform. However, you can still do this from a mobile browser and the experience is pretty good so it’s not essential to use a desktop at all.

FreeAgent Review – Summary

The time has come to sum up our FreeAgent review. It is, without a doubt, a fantastic option for small businesses, freelancers, and contractors. It offers unlimited users, international invoicing, and time tracking, all in a very easy and customisable UI and dashboard. 

The platform offers a very large list of features that you can use, especially if you’re from the UK. But, if you’re from the US or the rest of the world, you might find a few things to be missing. 

However, given the glowing reviews it has received, we are happy to recommend FreeAgent as a great online platform for your small business. Start with the 30-day free trial and decide if this is the accounting solution for you.

Use our exclusive code and save an extra 10% on your subscription – FOR LIFE:

Your Referral Code = 4904ixil

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