FreeAgent vs Xero

June 04, 2023 | Author: Michael Stromann
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FreeAgent
FreeAgent is accounting software for small businesses and freelancers, recommended by 99.5% of our users. From expenses and time tracking, to estimates and invoices, FreeAgent helps you take care of business day-to-day. Keep track of your cash flow and project profitability, and see who owes you money on your FreeAgent overview screen. No need to sweat. Set up and configure multiple sales tax rates for your country and the countries you do business with.
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Xero
Xero is accounting software for small business. Like alternatives, Xero allows to manage invoicing, reconciliation, accounts payable, bookkeeping and more. Share access to your latest business numbers with your team & your accountant – so everyone is up to speed. Xero accounting software lets you work anywhere.
FreeAgent and Xero are both popular cloud-based accounting software solutions, but they differ in their features, pricing, and target markets.

FreeAgent is designed for small businesses, freelancers, and self-employed individuals. It offers features for invoicing, expense tracking, bank reconciliation, project management, and tax calculations. FreeAgent focuses on simplifying accounting tasks and providing intuitive tools for managing finances and staying compliant with tax regulations. It offers a user-friendly interface and is particularly suitable for businesses with straightforward accounting needs.

Xero, on the other hand, is a comprehensive accounting software that caters to a wide range of businesses, from small startups to larger enterprises. In addition to standard accounting features, Xero provides advanced functionalities such as multi-currency support, inventory management, payroll processing, and integrations with a vast ecosystem of third-party applications. Xero offers more robust reporting and analysis capabilities, making it suitable for businesses with complex financial requirements.

When it comes to pricing, FreeAgent offers tiered subscription plans based on the number of users and clients, while Xero also offers various pricing plans depending on the size and needs of the business.

See also: Top 10 Online Accounting software
FreeAgent vs Xero in our news:

2017. Xero integrated with spending tracker Curve



Accounting software provider Xero has joined forces with Curve, a fintech startup that enables users to consolidate multiple bank cards into a single card and easily monitor their spending. The objective of this collaboration is to simplify the process of expense filing by reducing unnecessary complexities. Through the integration, users now have the option to connect the Curve app to Xero, allowing expenditures made using the Curve card to be automatically synced with the accounting software, eliminating the need for manual entry of each expense.


2015. Cloud accounting service for freelancers FreeAgent raises $5M



The UK-based cloud accounting software for freelancers and micro-businesses, FreeAgent, has secured $5 million in funding. FreeAgent was founded in 2007 out of the frustration faced by small businesses and freelancers in managing their company finances, which was often deemed challenging. This funding news arrives at a time when the UK's cloud-based accounting software market presents opportunities for further consolidation. In 2013, Iris acquired KashFlow for an estimated £20 million, leaving several accounting SaaS startups available. These include Clearbooks and Crunch, with Crunch also targeting freelancers and micro-businesses while offering an accountant-inclusive model.


2015. Cloud accounting service Xero raises $111M



New Zealand-based online accounting software firm Xero has successfully secured a $110.8 million funding round with the aim of expanding its presence in the North American market. Including this latest investment, Xero has raised a total of over $240 million from various investors. Xero specializes in offering online accounting software tailored for small and medium-sized businesses, as well as accountants. Recognizing that many small businesses still relied on basic accounting systems or even Excel spreadsheets, Xero anticipated the future shift towards cloud-based solutions. By providing a platform that enables small businesses, accountants, and bookkeepers to perform accounting tasks online and through mobile devices, Xero has revolutionized the way they operate.


2015. Xero launched cloud payroll service in US



Cloud accounting startup Xero has unveiled a new product that expands its reach into the back-office realm by offering cloud-based payroll and tax software. Known as Xero Payroll, this solution specifically caters to the needs of over 5 million small businesses in the United States with less than 20 employees. Payroll management can often pose a significant financial burden for these employers, costing between $200 and $500 per month when outsourced to third-party providers. Apart from the outsourcing expenses, there is also the risk of human errors and potential penalties due to incomplete or inaccurate information. Xero Payroll aims to address these challenges by providing small and medium-sized businesses (SMBs) with a cloud-based platform similar to its accounting software. This platform enables seamless employee payment processing and facilitates the electronic filing of state and federal payroll taxes.


2013. Xero Launches New Features and Plans for a Payroll Solution

Xero, the cloud-based accounting solution designed for small businesses, has introduced a range of new features. One of the notable additions is Xero Touch, an updated version of its mobile app for Apple's iOS7. With Xero Touch, users can conveniently perform various tasks directly from their smartphones, such as checking bank transactions, creating invoices, and communicating with their accountant. Additionally, Xero has introduced Xero Files, a user-friendly drag and drop application. This feature enables users to easily upload and attach files such as invoices, expense receipts, contracts, and more, making them readily accessible and organized within the system. Furthermore, Xero Purchase Orders now allows businesses to create purchase orders in a similar manner to how they can generate invoices in Xero. The pricing for Xero's services starts at $19 per month for small businesses, which may vary depending on the volume of invoices and payments processed.

Author: Michael Stromann
Michael is an expert in IT Service Management, IT Security and software development. With his extensive experience as a software developer and active involvement in multiple ERP implementation projects, Michael brings a wealth of practical knowledge to his writings. Having previously worked at SAP, he has honed his expertise and gained a deep understanding of software development and implementation processes. Currently, as a freelance developer, Michael continues to contribute to the IT community by sharing his insights through guest articles published on several IT portals. You can contact Michael by email stromann@liventerprise.com