Side-by-side comparison of pricing, features, integrations and MTD compliance for the UK’s three most popular cloud accounting platforms.
For UK startups and limited companies, Xero is the strongest choice. It has the widest integration ecosystem, the largest UK accountant partner network, the best multi-currency support, and scales cleanly from sole founder to growing team. FreeAgent suits freelancers and sole traders — especially with the free NatWest banking offer. QuickBooks is a capable mid-range option but has seen significant price increases in 2026.
AccTek standardises on Xero for every startup and SaaS client. We set it up, manage the bookkeeping inside it, and use it for all compliance and reporting.
Pricing as of mid-2026. All exclude VAT. Introductory discounts may apply.
| Feature | Xero | FreeAgent | QuickBooks |
|---|---|---|---|
| MTD VAT | ✓ | ✓ | ✓ |
| Bank feeds | All major UK banks | Most UK banks | Most UK banks |
| Unlimited invoicing | Standard plan+ | All plans | All plans |
| Multi-currency | Premium plan (£42) | Not available | Plus plan (£50) |
| Payroll | Add-on (£5/mo) | Included | Add-on |
| Receipt capture | Hubdoc (included) | Built-in | Built-in |
| Project tracking | Standard plan+ | Built-in | Plus plan+ |
| Integration ecosystem | 1,000+ apps | Limited (~50) | ~300 apps |
| API access | Full REST API | Limited API | REST API |
| Recurring invoices | ✓ | ✓ | ✓ |
| Self Assessment | Via accountant | Built-in filing | Built-in filing |
| Accountant partner network | Largest in UK | Growing | Large |
| Mobile app | iOS & Android | iOS & Android | iOS & Android |
| Scalability | Pre-revenue to enterprise | Micro/small only | Small to mid-market |
| Free option | 30-day trial | Free with NatWest/RBS | 30-day trial |
Xero is the UK’s most popular cloud accounting platform for startups and limited companies. It’s the platform most accountants prefer to work with, and it has the richest ecosystem of integrations.
AccTek is a Xero partner. We set up, configure and manage Xero for every startup client — including bank feeds, chart of accounts, receipt capture and MTD-compliant VAT returns. Learn about our bookkeeping service.
FreeAgent is a well-designed platform built specifically for UK freelancers, contractors and sole traders. Its flat-fee pricing and NatWest banking partnership make it an attractive option for micro-businesses.
QuickBooks Online is a solid platform with a user-friendly interface, but significant price increases in January 2026 (up to 50% on the Plus plan) have made it harder to recommend.
| If you are… | Choose | Why |
|---|---|---|
| A startup or limited company | Xero | Best integrations, scalability, accountant support |
| A SaaS company | Xero | Multi-currency, Stripe/GoCardless, API access, recurring invoicing |
| A freelancer or sole trader | FreeAgent | Flat pricing, Self Assessment, free with NatWest |
| A NatWest/RBS customer | FreeAgent | Completely free — unbeatable value |
| An agency or consultancy | Xero | Project tracking, client management, time tracking integrations |
| Budget-conscious, few transactions | QuickBooks Simple Start | Cheapest entry point at £16/mo with MTD compliance |
| Planning to raise investment | Xero | Management accounts, accountant collaboration, investor-ready reporting |
Xero is the best accounting software for most UK startups. It offers the widest integration ecosystem, strong multi-currency support, real-time bank feeds, MTD-compliant VAT returns, and the most accountant compatibility. FreeAgent suits freelancers and sole traders. QuickBooks is a solid mid-range option.
Xero UK pricing in 2026: Starter £15/month, Standard £30/month, Premium £42/month. Payroll is an additional £5/month for up to 5 employees, plus £1 per additional person. All prices exclude VAT.
QuickBooks UK pricing in 2026: Simple Start ~£16/month, Essentials ~£22/month, Plus £50/month, Advanced £115/month. Prices increased significantly in January 2026, with the Plus plan rising 47%.
Yes. FreeAgent is completely free for NatWest, Royal Bank of Scotland, Ulster Bank and Mettle business account holders. All features are included at no cost for as long as you maintain your qualifying bank account.
Most UK accountants work with Xero as their primary platform. Xero has the largest accountant partner network in the UK, with extensive practice tools and client management features. QuickBooks and FreeAgent are also widely supported.
Yes. Xero, QuickBooks and FreeAgent are all fully Making Tax Digital compliant. They can submit VAT returns directly to HMRC and maintain the digital records required under MTD legislation.
Yes. Xero has a built-in conversion tool for migrating from QuickBooks. AccTek manages Xero migrations as part of the onboarding process, ensuring chart of accounts, opening balances and historical data transfer correctly.
Xero is the strongest choice for SaaS companies due to multi-currency support, extensive integrations (Stripe, GoCardless, subscription platforms), recurring invoicing, and API access. FreeAgent lacks multi-currency. QuickBooks supports it but has a smaller integration library.
AccTek standardises on Xero for all clients. We believe Xero offers the best combination of features, integrations and scalability for startups and growing businesses. We can help migrate clients from QuickBooks or FreeAgent to Xero.
FreeAgent is free with NatWest/RBS/Mettle bank accounts. Other free options like Wave and QuickFile exist but have limitations. For growing startups, investing in Xero (£30/month for the Standard plan) provides significantly better integrations, reporting and accountant compatibility.
AccTek sets up, configures and manages Xero for every startup client. Migration from QuickBooks or FreeAgent included.
Pricing and features accurate as of mid-2026 and subject to change. All software prices exclude VAT. This page is for general information only — contact AccTek for personalised advice. Content by Godwin Pinto, ACA (ICAEW).
