FreeAgent Accounting Software: Best Bookkeeping Software


Chris Andreou

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Running a business, no matter the size, comes with its challenges. Among these challenges, managing finances often ranks at the top. FreeAgent Accounting Software is a solution designed specifically for small businesses and freelancers in the UK. This software aims to simplify the complexities of accounting, making it easier for business owners to focus on what they do best: growing their businesses.

FreeAgent online accounting software offers a wide range of features that help manage invoicing, expenses, taxes, and more, all from one user-friendly platform. It integrates seamlessly with UK banks and complies with local tax regulations, including Making Tax Digital (MTD). This ensures that businesses can stay on top of their financial obligations without getting bogged down by paperwork. Let's have a clear understanding of why FreeAgent could be the perfect fit for your accounting needs.

What is FreeAgent?

FreeAgent is a top-notch accounting software that over 150,000 small businesses, freelancers, and contractors love using. With this cloud accounting software, you can easily check your financial data no matter where you are or what time it is. It offers a range of features tailored to meet the specific needs of the users, making it easier to handle everything from invoicing to tax management.

It doesn't matter if you work as a sole trader, run a limited company or freelance – FreeAgent accounting software has got what it takes to help manage your business finances without hassle. With its wide range of features combined with ease-of-use making it stand out among other accounting software solutions.

History of FreeAgent

Founded in 2007, FreeAgent began with a clear mission: to make accounting hassle free for small businesses and freelancers. The company started in Edinburgh, Scotland, with a focus on creating a user-friendly accounting solution. Over the years, FreeAgent has grown significantly, earning a reputation for its user friendly interface and robust features. In 2018, it was acquired by the Royal Bank of Scotland, further solidifying its place as a trusted accounting software provider in the UK.

FreeAgent Features

FreeAgent offers a comprehensive suite of features designed to make accounting simple and efficient. Some of the key features include:

User-Friendly Interface

1. Easy Navigation and Setup:

FreeAgent's intuitive design ensures that even those with little accounting knowledge can navigate the software effortlessly. The setup process is straightforward, allowing you to get started quickly without the need for extensive training.

2. Dashboard Overview:

The dashboard provides a comprehensive snapshot of your business finances. You can see your income, expenses, bank balances, and tax timelines all in one place. This overview helps you stay on top of your financial health with minimal effort.


1. Customizable Templates:

Create professional-looking invoices with ease. Users can customize their invoices with their branding, add payment terms, and send them directly to clients. This ensures your invoices look professional and consistent, enhancing your business image.

2. Automated Reminders:

FreeAgent allows you to set up automated payment reminders for your clients. This feature helps you get paid faster by reminding clients of upcoming or overdue payments without you having to manually follow up.

Expense Tracking

1. Receipt Capture via Mobile App:

With FreeAgent’s mobile app, you can capture receipts on the go. Simply take a photo of your receipt, and the app will store it securely. This feature saves you time and reduces the risk of losing important documents.

2. Automated Expense Management:

FreeAgent automates daily admin tasks such as categorizing your expenses, making it easier to track where your money is going. Track expenses effortlessly by uploading receipts, categorizing expenses, and linking them to specific projects or clients.

Bank Integration and Reconciliation

1. Sync with UK Banks:

FreeAgent integrates seamlessly with most UK banks. You can connect your bank account to FreeAgent and sync your transactions in real-time. This feature reduces manual data entry and ensures accurate financial records.

2. Real-Time Transaction Import:

With real-time transaction imports, you no longer have to manually enter your financial data. FreeAgent automatically imports your bank transactions, saving you time and reducing errors. You can then reconcile these transactions with your accounts effortlessly.

Tax Management

1. VAT, Self Assessment, and Corporation Tax:

FreeAgent software simplifies tax management by automatically calculating VAT, Self Assessment tax return, and Corporation Tax. You can generate tax reports with ease and ensure you’re always compliant with HMRC regulations.

2. MTD (Making Tax Digital) Compliance:

FreeAgent accounting software is fully compliant with Making Tax Digital (MTD) initiative. This means you can file your VAT returns directly to HMRC from within the software, ensuring that your income tax submissions are accurate and timely.

3. Payroll:

The software includes a payroll feature that simplifies the process of managing employee salaries, PAYE, and National Insurance contributions. It generates payslips and ensures that all payroll obligations are met accurately and on time.

Project Management

1. Time Tracking:

Record billable and non-billable hours accurately. Users can log their time on a daily or weekly basis, making it easy to keep track of work done.

2. Project Profitability Tracking:

Monitor the profitability of each project by comparing income and expenses. This feature helps users understand which projects are most profitable and make informed business decisions.

Support and Security

1. Customer Support Availability:

FreeAgent offers excellent customer support to help you with any issues or questions. You can access a wealth of resources, including tutorials, webinars, and a dedicated support team that is ready to assist you.

2. Data Security Measures:

Security is a top priority for FreeAgent. The software employs advanced security measures to protect your financial data. Your information is encrypted and stored securely, giving you peace of mind that your sensitive data is safe.

Multi-Currency and International Billing

1. Multi-Currency Support:

FreeAgent lets businesses handle their transactions and bills in various currencies. It allows you to choose default currencies for your clients and suppliers, which helps keep track of payments and costs easily.

2. International Billing:

Companies can create invoices and reports in several languages. There are customizable templates from FreeAgent that you can change to fit the language needs of your customers abroad.

3. Exchange Rates and Conversions:

The system keeps an eye on exchange rates, doing currency swaps automatically using the most recent figures. This feature is great because it means financial reports are accurate, making it less complicated to manage money coming in or going out across borders.

FreeAgent Benefits for Businesses

FreeAgent Accounting Software offers numerous benefits that can make managing your business finances simpler and more efficient. Here are some key advantages of using FreeAgent:

Ease of Use: FreeAgent is designed with simplicity in mind, making it accessible even for users without extensive accounting knowledge. The intuitive interface and straightforward navigation help users quickly get used to with the software.

Time Savings: By automating repetitive tasks such as invoicing, expense tracking, and bank reconciliation, FreeAgent reduces the amount of manual work you need to do. This frees up your time so you can focus on more important aspects of your business, like serving your customers or growing your business.

Increased Accuracy in Financial Management: FreeAgent helps you achieve greater accuracy in your financial management. Manual data entry can lead to errors, which can have serious consequences for your business, such as incorrect financial reports or missed tax deadlines. By automating data entry and using built-in checks and balances, FreeAgent minimizes the risk of errors. Additionally, FreeAgent's real time financial data updates ensure that you always have the most accurate and up-to-date information.

Enhanced Financial Visibility and Control

Detailed financial reports, such as profit and loss statements, balance sheets, and cashflow statements, provide deeper insights into your business’s performance. These reports help you identify trends, spot potential issues, and make strategic decisions to improve your profitability and cash flow.

Compliance with UK Tax Regulations: Staying compliant with UK tax laws is crucial for businesses, and FreeAgent ensures that users are always up-to-date with the latest regulations. The software’s tax management features help users avoid penalties and maintain good standing with HMRC.

Mobile Accessibility for On-the-Go Management: FreeAgent’s mobile app gives you the flexibility to handle your accounting tasks from anywhere, whether you’re traveling, meeting clients, or working remotely. This mobility ensures that you stay connected to your business and can respond quickly to financial tasks, no matter where you are.

Cost-Effectiveness: FreeAgent offers a range of pricing plans to suit different business needs and budgets. By providing comprehensive accounting solutions at an affordable price, it delivers excellent value for money.

Who Can Use FreeAgent Software?

FreeAgent is versatile accounting software designed to cater to various types of individuals and businesses. It is particularly well-suited for:

Small Businesses:

FreeAgent is ideal for small businesses that need a comprehensive yet easy-to-use accounting solution. It helps manage invoicing, expenses, payroll, and tax compliance, making it a valuable tool for business owners with limited accounting expertise.

Freelancers and Contractors:

Freelancers and contractors can benefit greatly from FreeAgent’s features tailored to their unique needs. The software’s project management tools, time tracking, and simplified invoicing help freelancers manage their client work efficiently.

Sole Traders:

Sole traders often handle all aspects of their business, including financial management. FreeAgent simplifies this process by providing tools for expense tracking, tax calculation, and bank reconciliation, helping sole traders stay organized and compliant.


Partnerships can use FreeAgent to manage their shared finances. The software allows partners to track income and expenses, allocate profits, and manage joint projects with ease.

Accountants and Bookkeepers:

Accountants and bookkeepers can use FreeAgent to manage multiple clients’ finances. The software’s cloud-based platform allows for easy collaboration, real-time access to financial data, and efficient management of client accounts.


Startups often require flexible and scalable accounting solutions as they grow. FreeAgent’s affordability and range of features make it an excellent choice for new businesses looking to establish solid financial practices from the outset.

Limited Companies

Limited companies require advanced accounting features to handle more complex financial transactions and reporting. FreeAgent's limited company plan offers everything needed to manage company finances, including corporation tax calculations, dividend recording, and detailed financial reports.


Landlords can use FreeAgent to manage their rental properties' finances. The software helps track rental income, manage expenses, and stay compliant with tax regulations, making property management more efficient and organized.

FreeAgent Pricing

FreeAgent offers straightforward pricing plans designed to fit the needs of different types of businesses. FreeAgent’s pricing is subscription-based, which means you pay a monthly fee for access to the software. With options like Sole Trader, Partnership or LLP, Landlord and Limited Company, there's something for everyone. Each level comes with its own set of features and benefits tailored to different business types at diverse price points. There are no hidden fees, and the pricing is transparent, so you know exactly what you're paying for.

Getting Started with FreeAgent

Getting started with FreeAgent is simple. Here’s a simple steps to follow to set up your account and begin managing your finances efficiently.

Step-by-Step Guide to Setting Up an Account

  1. Sign Up: Go to the FreeAgent website and sign up for an account. You’ll need to provide some key information about yourself and your business.
  2. Choose Your Plan: Select the pricing plan that best suits your business needs. If you’re unsure, you can start with the free trial to explore the features.
  3. Set Up Your Business Profile: Enter your business details, such as your business name, type of business, and contact information.
  4. Connect Your Bank Account: Link your business bank account to FreeAgent to automatically import transactions. This helps keep your financial data up-to-date.
  5. Customize Your Invoices: Set up your invoice templates by adding your business logo and choosing a layout that suits your brand.
  6. Add Your Clients and Suppliers: Enter the details of your clients and suppliers to keep track of your business relationships.
  7. Import Your Financial Data: If you’re switching from another accounting software, you can import your previous financial data into FreeAgent.

FreeAgent is a top choice for small businesses, freelancers, and other professionals looking for an efficient and easy-to-use accounting solution. Its user-friendly interface, time-saving automation, and comprehensive features make managing your finances a breeze.

By choosing FreeAgent, you can focus more on growing your business and less on the complexities of accounting. The software’s robust support system, including tutorials, webinars, and customer service, ensures that you’ll always have help when you need it.

If you’re already using FreeAgent and like its features, you might wonder how it compares to other accounting software. Check out our article, FreeAgent vs Xero, where we compare both platforms. We’ll help you decide which one fits your needs better by looking at their strengths, weaknesses, ease of use, and cost.

Join FreeAgent Experts, Join GoForma

If you want to experience the benefits of FreeAgent without any extra cost, consider joining GoForma Accounting. We offer FreeAgent access as part of our accounting packages. We bring years of experience in providing comprehensive accounting and tax services to UK businesses and individuals. GoForma is the trusted and accredited FreeAgent accountants and platinum partner in the UK offering expert accounting services combined with the powerful features of FreeAgent to ensure your business's financial health and compliance.

Frequently Asked Questions on FreeAgent

1. What is FreeAgent?

FreeAgent is an online accounting software designed for freelancers, small businesses, and other professionals. It helps manage invoices, expenses, projects, and taxes efficiently.

2. How much does FreeAgent cost?

FreeAgent offers various pricing plans based on your business type. There are plans for sole traders, partnerships, landlords and limited companies. You can also start with a 30-day free trial to explore the software.

3. Can FreeAgent help with tax compliance?

Yes, FreeAgent automatically calculates VAT, Self Assessment, and Corporation Tax. It is also compliant with the UK’s Making Tax Digital (MTD) requirements, allowing you to file VAT returns directly to HMRC.

4. How does FreeAgent integrate with my bank?

FreeAgent can sync with most UK banks, allowing real-time transaction imports. This integration helps you keep your financial data up-to-date and simplifies bank reconciliation.

5. Is there a mobile app for FreeAgent?

Yes, FreeAgent has a mobile app that allows you to manage your finances on the go. You can create invoices, capture receipts, and monitor your financial status from your mobile device.

6. How can I get started with FreeAgent?

You can start by signing up for a 30-day free trial on the FreeAgent website. During the trial, you can explore all the features and see how they fit your business needs. Also, you can avail GoForma Accounting service to get FreeAgent access at no extra cost.

7. Who can use FreeAgent?

FreeAgent is ideal for freelancers, sole traders, small business owners, contractors, partnerships, limited companies, landlords, and accountants. It provides tailored features to meet the needs of various types of users.

8. Which tax returns can be submitted through FreeAgent?

You can submit self assessment tax returns and VAT returns directly to HMRC through FreeAgent.

9. Do I Need an Accountant if I Use FreeAgent?

The need for an accountant depends on your business’s complexity and specific requirements. FreeAgent handles basic accounting needs, including tax calculations and financial reporting. Still, for complex financial situations, strategic planning, or specialized tax advice, consulting with an accountant is beneficial to ensure compliance and optimize financial management.

10. Which banks provide Free access to Freeagent with business bank account?

You can get FreeAgent for free while you retain a business bank account with NatWest, Royal Bank of Scotland or Ulster Bank, or make at least one transaction a month through a Mettle bank account.