FreeAgent pricing review – Is it the right choice for your business?

Managing business finances is a cornerstone of running a successful enterprise. With a growing range of accounting software solutions available, businesses often find it challenging to select the one that best suits their needs. FreeAgent is a popular choice among UK-based businesses, particularly small enterprises, freelancers, and contractors. But does it provide the value your business needs at its price point? In this review we’ll explore FreeAgent pricing, its key features, and whether it’s the right choice for your business.

What is FreeAgent?

FreeAgent is a cloud-based accounting software tailored to meet the needs of small businesses, sole traders, and contractors. It simplifies financial management, offering tools for invoicing, expense tracking, payroll integration, and tax filing. FreeAgent also integrates seamlessly with several UK banks, making it a convenient choice for managing real-time finances.

FreeAgent pricing review

FreeAgent offers three pricing tiers based on the structure of your business. Here’s a breakdown:

Sole Trader Plan

• Cost: £12 per month + VAT (for the first 6 months), £19 per month + VAT thereafter.
• Key Features:
  • Income and expense tracking.
  • Self Assessment filing support.
  • Invoice creation and management.
  • Automatic bank feeds.

Partnerships and Limited Liability Partnerships (LLPs) Plan

• Cost: £16 per month + VAT (for the first 6 months), £24 per month + VAT thereafter.
• Key Features:
  • All sole trader features.
  • Partnership-specific accounting support.
  • Capital accounts tracking for multiple partners.

Limited Company Plan

• Cost: £22 per month + VAT (for the first 6 months), £29 per month + VAT thereafter.
• Key Features:
  • Features for corporation tax filing.
  • Payroll support via HMRC integration.
  • Dividend vouchers and documentation.
  • VAT filing (including support for Making Tax Digital – MTD).

Note: FreeAgent is offered free of charge to NatWest, Royal Bank of Scotland, Ulster Bank NI, and Mettle business account holders, making it a cost-effective option if your business banks with one of these providers.

Key features of FreeAgent

FreeAgent provides an extensive range of features designed to streamline financial management. Below are some highlights:

1. Real-time bank feeds
   FreeAgent connects with UK banks to automatically import transactions, reducing manual data entry and offering an up-to-date overview of your finances.
2. Invoicing and payments
   Create customised, professional invoices with ease. FreeAgent also offers automated payment reminders and integrates with payment processors like Stripe and PayPal.
3. Expense management
   Easily track expenses, categorise them for tax purposes, and upload receipts directly to the system.
4. VAT and tax support
   The software supports MTD VAT submissions and provides tools to prepare for Self Assessment and corporation tax filings.
5. Payroll integration
   While FreeAgent doesn’t handle payroll directly, it integrates with HMRC to help manage PAYE and RTI submissions effectively.
6. Comprehensive reporting
   Gain insights into your business performance through profit-and-loss statements, balance sheets, and cash flow reports.
7. Project management
   For service-based businesses, FreeAgent offers project tracking, allowing you to monitor income and expenses by project and invoice clients accordingly.

Pros and cons of FreeAgent

Pros

• User-friendly interface: Designed for non-accountants, the software is intuitive and easy to navigate.
• Automation features: Automatic bank feeds, recurring invoicing, and real-time tax estimates save time.
• Integration options: Works seamlessly with banks, HMRC, and other tools like Zapier.
• Free with partner banks: A cost-saving option for businesses banking with NatWest, RBS, Ulster Bank NI, or Mettle.

Cons

• Higher costs for limited companies: The Limited Company Plan may seem steep compared to competitors like QuickBooks or Xero.
• Limited scalability: Larger businesses with complex accounting needs may find the software lacking advanced features.
• Restricted payroll capabilities: FreeAgent relies on third-party integrations for payroll management, which could be a drawback for businesses with in-house employees.

Review verdict – Is FreeAgent the right choice for your business?

To conclude our review, FreeAgent is an excellent solution for UK sole traders, contractors, and small businesses seeking an affordable, easy-to-use accounting platform. It shines in automating routine tasks, providing tax-related support, and simplifying financial tracking. However, businesses with more complex requirements or larger teams may find alternative software like Xero or Sage more suitable.

If your business banks with NatWest, RBS, Ulster Bank NI, or Mettle, the free access to FreeAgent could make it a particularly attractive choice. Ultimately, FreeAgent’s value lies in its simplicity, accessibility, and focus on the UK market.

Final thoughts

FreeAgent offers a robust, user-friendly accounting solution tailored for UK small businesses. While it may not suit every organisation, its features, combined with competitive pricing, make it a strong contender for sole traders and contractors. To determine if FreeAgent is right for your business, consider your financial management needs, growth plans, and whether you can benefit from the free access offered by partner banks.

FAQ – FreeAgent pricing review