FreeAgent for Freelancers and Small Businesses: A Complete Guide
FreeAgent is cloud accounting software designed specifically for freelancers, contractors and small businesses. This guide covers what FreeAgent does, how it compares to Xero and QuickBooks, and who it is best for.
What Is FreeAgent?
FreeAgent is a cloud-based accounting and invoicing platform designed specifically for freelancers, contractors, and small businesses. Unlike Xero or QuickBooks, which target businesses of many sizes, FreeAgent was built from the ground up for the self-employed and micro-business market. It is owned by NatWest Group and is available free to NatWest and Royal Bank of Scotland business banking customers.
Key Features
Invoicing: Create and send professional invoices, track who has paid and who has not, and set up automatic payment reminders. Expense tracking: Log and categorise business expenses, photograph receipts, and submit expense claims. Bank reconciliation: Connect your bank account via Open Banking to automatically import transactions. VAT returns: Prepare and submit MTD-compliant VAT returns directly to HMRC. Self Assessment: Prepare and submit self-assessment tax returns, including calculating your tax liability in real time as you go through the year. Payroll: Basic payroll processing for small teams.
Who Is FreeAgent Best For?
FreeAgent works best for sole traders, freelancers, IT contractors, and small businesses with straightforward accounting needs. Its self-assessment integration is particularly valuable for the self-employed. It is less suitable for businesses with complex inventory management, multiple currencies, or a large number of employees.
FreeAgent vs Xero vs QuickBooks
FreeAgent is simpler and more focused than Xero or QuickBooks, which makes it easier to use but less powerful for growing businesses. Xero is generally preferred for small to medium businesses requiring more sophisticated reporting, integrations, and multi-currency support. QuickBooks offers strong invoicing and payroll features. FreeAgent's self-assessment integration is a genuine differentiator for the UK self-employed market that neither Xero nor QuickBooks matches as cleanly. Cost: FreeAgent is free for NatWest/RBS business customers; otherwise approximately 19 per month.
This page was last updated:
Learnsignal Education Team
Expert Tutor at Learnsignal
Qualified professional with years of experience in teaching and helping students achieve their accounting qualifications.
View all posts by Learnsignal Education Team
