FreeAgent Software Review 2024

Our Verdict

Understand your financial health with FreeAgent

FreeAgent is an easy-to-use accounting software for SMBs, with built-in project management and time-tracking capabilities. In addition to helping you streamline invoicing and expense tracking and automating bank feeds, it gives you invaluable insights into the profitability of each project and the overall financial health of your business.

In this review, we’ll go over the core features of the platform, see how it compares to other accounting software on the market, and give you a breakdown of the value-for-money FreeAgent offers.

Pros

  • A large library of customizable estimate and invoice templates
  • Built-in time tracking and project management capabilities
  • Knowledgeable customer support with fast response times
  • Real-time overview of project profitability

Cons

  • The lack of flexibility regarding the pricing

FreeAgent Plans & Pricing

Unlike most accounting software solutions on the market, FreeAgent has a singular pricing plan. This means you can’t pick and choose which features you need and pay only for those. Instead, your only option is to pay the full price for all the features and functionalities of the software.

While rather inflexible with the pricing, the value for money you get with FreeAgent is great, especially considering that you get the first six months at 50% of the original price. The first six months are $12/month, and the software renews at $24/month thereafter, with no additional fees or hidden charges.

Before you commit, though, you can test out the accounting software in practice for 30 days, completely risk-free, thanks to FreeAgent’s free trial. This will give you enough time to learn the ins and outs of the platform and see it in practice so you can make an informed decision.

FreeAgent Overview

Starting price $12/month for the first 6 months
Best for SMBs that want to track all billable hours and monitor project profitability
Customer support Phone, Email
App integrations Stripe, PayPal, WooCommerce, HubSpot, Basecamp, Zapier
Security & Compliance EU GDPR compliance, AES-256 encryption, two-factor authentication (2FA), security audits
Payroll UK-based businesses only
Reporting & analytics
Mobile app
Double entry
E-signatures
Auto-alerts and reminders

Features

FreeAgent is a feature-rich accounting solution designed for SMBs. In addition to the core accounting functionalities, it also helps you track time and gives you an overview of all your projects and their profitability.

Here’s a quick breakdown of FreeAgent’s key features, so you can have a better idea of what you can expect from this accounting software:

Estimates and Invoices

A screenshot of FreeAgent's invoicing feature

FreeAgent helps you create and send professional estimates and invoices to potential clients in minutes. You’ll have plenty of templates to choose from and will be able to add your brand’s colors and company logo to them in just a few clicks. The app lets you send estimates and invoices in over 25 different languages, which is a must-have for businesses working with international clients.

The invoices also come with automated late payment reminders, so you won’t have to worry about chasing clients for the money you’re owed. Additionally, you’ll have a comprehensive list of all outgoing invoices in FreeAgent, so you’ll be able to see the exact amounts different clients owe you at a glance.

Expenses

A screenshot of FreeAgent's expense management feature

FreeAgent also acts as a robust, automated expense management system. You’ll be able to easily connect it with your business bank account, snap mobile receipts to instantly upload them to your account, and get a clear overview of recurring expenses so you can plan your budget accordingly.

The app also lets you track all bank payments and “out-of-pocket” expenses, so you’ll know where every single dollar went. Additionally, you’ll see all expenses of individual employees, such as travel expenses, and will be able to review and reimburse them with ease.

Dashboard

A screenshot of FreeAgent's dashboard

The dashboard acts as a central hub for all your business-critical information. You will be able to see your invoicing timelines, monitor your cash flow, review your expenses, and see your profit and loss at a glance.

We found the color-coding helpful as it allows you to assess the financial health of your business at a glance. It’s also one of the easiest dashboards we’ve tested. It’s fully customizable through a simple drag-and-drop tool, so you can adapt it according to the unique needs of your business.

Time Tracking

A screenshot of FreeAgent's time tracking feature

With FreeAgent, you can track every minute you and your team spend working on a project through both the cloud-based version of the software and the mobile app. You’ll have accurate timesheets of all your employees, which greatly facilitates payroll runs.

Unfortunately, the payroll functionality is only available to UK-based businesses, so you’ll have to rely on a different payroll software if you’re not located in the United Kingdom.

FreeAgent lets you see all the time you collectively spent working on a specific project, and you can easily convert the timesheets into invoices and forward them to clients at the end of the month. The built-in stopwatch also lets you set different billing rates for different times, ensuring that you’re always billing your clients for the correct amount.

Projects

A screenshot of FreeAgent's project management feature

While not a full-blown project management software per se, FreeAgent does give you much-needed visibility into your project activity. This includes project income and expenses, time spent working on specific tasks, and overall project profitability.

You can even use the software to create to-do lists with task descriptions, rates, and color-coded statuses. This will help you track your team’s progress, track billable and unbillable time, and properly prioritize tasks against deadlines.

Integrations

FreeAgent offers a handful of integrations with project management, CRM, and accounting tools, as well as e-commerce and payment solutions. Some of the most popular integrations include Stripe, PayPal, Basecamp, WooCommerce, Zapier, HubSpot, AutoEntry, GoSimpleTax, and Syft Analytics.

Additionally, you’ll have access to the FreeAgent API (Application Programming Interface), meaning you’ll have the option to build custom integrations with the apps and tools that you’re already using.

FreeAgent Customer Reviews

FreeAgent user reviews on all popular review sites are overwhelmingly positive, with the app boasting an average rating of 4.5/5 stars. The users often highlight the app’s ease of use, the quality of customer support (technical knowledge and professionalism), and the value for money as FreeAgent’s strongest suites.

A customer's review of FreeAgent

The few gripes users have with the software mainly revolve around occasional crashes of the mobile app and the difficulties with editing or amending mistakes when manually entering the data into the software.

What is FreeAgent Good For?

FreeAgent is a great choice for small and medium-sized businesses that sell digital services. The main reason for this is that, in addition to streamlining and automating invoicing and accounting, it lets you track the time spent on each task and allows you to see the profitability of each individual project at any time.

This helps ensure that you never miss any billable hours and lets you see exactly which client or project is bringing in the most money so you can scale the most profitable ones and discontinue the ones that are losing you money.

FreeAgent also provides a ton of value for your money, provided you’re going to fully utilize all of its functionalities. If you only need it for invoicing and accounting, there are other options available at lower prices.

FreeAgent vs Top Competitors

Accounting Software FreeAgent QuickBooks Melio ZipBooks
Best for SMBs that want to track all billable hours and monitor project profitability SMBs that want to automate invoicing, payroll, tax filing, and time tracking Businesses looking for a payment processing solution SMBs looking for free invoicing and vendor management
Starting Price $12/month for the first 6 months From $18/month Free ACH Bank Transfers Free
Free Trial 30-day free trial 30-day free trial N/A Free plan
Payroll UK-based businesses only
Reporting Standard financial reports Customizable professional reports Basic financial reports Advanced, customizable reports
Mobile App

FreeAgent vs QuickBooks

FreeAgent and QuickBooks are quite similar in terms of their core functionalities. Both apps offer functionalities like invoicing, expense tracking, tax filing, time tracking, and project management.

The main difference between the two is that QuickBooks also offers inventory management, although only on the most expensive pricing plan. Nevertheless, this makes it a viable option for e-commerce and brick-and-mortar businesses, whereas FreeAgent is exclusively geared towards digital service businesses.

Additionally, QuickBooks has three distinct pricing tiers, so there’s more flexibility when it comes to choosing what features and functionalities you’ll be paying for.

Find out more in our in-depth QuickBooks review.

FreeAgent vs Melio

Melio is a payment processing solution that helps you pay your vendors and accept online payments from your clients/customers. As such, it lacks the key accounting functionalities businesses typically need, so it’s only viable if you’re already using accounting software and simply need a way to quickly and securely process online transactions.

Put simply, the two apps cover two fundamentally different aspects of managing business finances. What’s worth noting is that you could integrate the two platforms using FreeAgent’s API if you need both an accounting platform and a payment processing tool.

Find out more in our review of Melio.

FreeAgent vs ZipBooks

ZipBooks offers a free forever plan with invoicing and vendor management capabilities, so it’s a great option for online retailers, provided they use Square or PayPal as their payment processors (the only two supported ones on the free plan).

When it comes to the paid version of ZipBooks, you’ll get all the core invoicing and accounting features, together with time tracking. ZipBooks is a bit more expensive than FreeAgent if you want access to all features, plus it lacks project management capabilities, so FreeAgent is a better option if you’re looking for a premium accounting app.

Find out more in our ZipBooks review.

Verdict — Is FreeAgent Worth It?

FreeAgent is super worth it, provided you’re going to be using everything the software offers. As we mentioned earlier in this review, there’s only one pricing plan for this software, so it doesn’t make much sense to pay the full price without utilizing the project management and time-tracking capabilities it offers.

That said, for businesses that sell digital services to a variety of clients, especially those that charge different rates for different services, FreeAgent is a worthwhile investment. It’s more cost-effective than other tools with the same functionalities, plus it lets you track time spent on each individual task and gives you valuable insights into the profitability of each project.

How We Test Accounting Software

Here are the primary parameters we take into consideration when reviewing and comparing the best accounting software solutions:

  • Pricing — The available paid pricing plans, free plans, and free trials, as well as the overall value for money the platform provides.
  • Features — The core accounting and invoicing features of the platform, together with the advanced functionalities and any available paid add-ons.
  • Integrations — Native integrations with third-party tools and apps, plus the availability of the API (Application Programming Interface) for building custom integrations.
  • Automation — The available automations, their customization options, and their level of complexity.
  • Ease of use — The platform’s UI (User Interface) and navigation, as well as the technical knowledge required to fully utilize all of its features and functionalities.
  • Third-Party Reviews — The overall user feedback on reputable review sites, with an emphasis on the most commonly mentioned advantages and drawbacks of the software.

How To Choose the Best Accounting Software

Not every accounting software solution is a good fit for every business. Here are the key aspects you should factor in to ensure you make the right choice:

  • Price — The tool should align with your budget, all the while offering all the key functionalities you need. Don’t just go for the cheapest tool if it fails to meet your needs, and don’t overpay for a complex platform if you don’t plan on using half of what it offers.
  • Features — Carefully go over all the features available on different pricing tiers to make sure that the software meets all your needs.
  • Scalability — Pay attention to how easy it would be to scale the tool as you grow your business. This includes upscaling to more expensive pricing plans, as well as adding new users to your account as you expand your team.
  • Ease of use — Accounting software should greatly facilitate the bulk of financial tasks, so it makes no sense to opt for a tool that requires you to spend months and hundreds of dollars on training workshops. It’s best to opt for one that’s easy to use, especially if you plan on having your entire team use it on a daily basis.
  • Integrations — Choosing accounting software that integrates with the tools and apps you’re already using will save you a ton of valuable time. You won’t have to worry about double data entry or data discrepancies, and you’ll have all the info you need in one app.
  • Customer support — If you encounter a bug or a technical issue, or simply have a question regarding the tool, you want to be able to quickly get in touch with a knowledgeable support agent. Check the working hours of the platform’s customer support and pay attention to what the users have to say about their experiences with the support representatives.

FAQs

What are the disadvantages of FreeAgent?

Do I need an accountant if I have FreeAgent?

Which banks does FreeAgent support?

Is the FreeAgent app free?

Is FreeAgent payroll free?

Aleksandar Stevanovic

Aleksandar Stevanovic spent 10 years honing his craft as a freelance content writer. He has a degree in Economics, and extensive experience in software, crypto, and cybersecurity industries. He covers a multitude of topics, writing factual and informative articles, helping individuals better understand the intricacies of the online world. Over the last two years, his research focus shifted more towards tech and software content, as evidenced by his publications on CEX.IO, Business2Community, and Techopedia. He believes in simplifying complex topics and bringing them closer to like-minded individuals. His work is as detail-oriented as it is creative, and is designed to…