Choosing the Right Accounting Software: Xero, FreeAgent & QuickBooks Compared

Picking the right tool is crucial. Here’s a comparison for UK small businesses.

💡 Quick Comparison

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Comparison chart listing features of accounting platforms, including platform name, best for, and highlights.

📊 Key Features

  • MTD Compliance: All three support HMRC submissions.

  • Bank Feeds & Reconciliation: Strong across the board; Xero excels at auto-match.

  • Invoicing & Payments: QuickBooks offers unlimited invoices; FreeAgent and Xero have similar functionality.

  • Support: QuickBooks leads with 24/7 chat; FreeAgent and Xero offer weekday chat and email.

  • Advanced Tools: FreeAgent shines with built-in forecasting at no extra cost; Xero offers flexible inventory and project tracking.

🧭 How to Decide

  • Go FreeAgent if budget is tight and you want forecasting tools included.

  • Choose QuickBooks for 24/7 support, payroll, and unlimited invoicing.

  • Pick Xero if you need advanced automation, inventory, or project features.