Cloud accounting software compared: Xero vs QuickBooks vs FreeAgent

Choosing accounting software is one of the first practical decisions a new business makes, and switching later is more disruptive than picking well the first time. Here's how the three most common options compare in practice.

Xero

Popular with small and medium businesses, strong bank feed integration, and a large ecosystem of connected apps. Generally a solid all-rounder for businesses that expect to grow.

QuickBooks

Also widely used, with a similar feature set to Xero and strong reporting. Often a good fit for businesses that want familiar, well-documented software with broad third-party support.

FreeAgent

Aimed more squarely at freelancers and small sole traders, with simpler invoicing and a lighter interface. Free for some business banking customers, which makes it attractive for very small operations.

Our advice

The right choice depends on your business size, sector and growth plans more than any single feature list. We're accredited to work across all three and will recommend the one that fits your actual situation, not just the one we prefer to use.