Zoho Books vs FreeAgent: which suits UK freelancers and small firms?
FreeAgent suits UK sole traders and very small limited companies that want simple bookkeeping and self-assessment support, and many UK business bank accounts include it. Zoho Books suits small firms that expect to grow, need inventory, projects, multi-currency or approvals, or want to connect accounting with Zoho CRM and other apps. Both support Making Tax Digital for VAT.
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FreeAgent was built for UK freelancers and contractors. Its strengths are a simple interface, tax timeline views and support for self-assessment and small company tasks. If you work alone and mainly need invoicing, expenses and tax estimates, it is a sensible choice.
Zoho Books covers more ground. It handles VAT under Making Tax Digital, multi-currency invoicing, purchase orders, projects with time tracking, approvals, and basic inventory, and it links to Zoho CRM, Inventory and Analytics. That matters if you employ people, sell products or plan to add a CRM. It also has a free plan for very small businesses, subject to Zoho's limits.
Think about your accountant too. Ask which tool they support and whether they want direct access. Moving later is possible, but switching mid-year means extra work on opening balances, so choose for where you will be in two or three years.
Key points
- List what you need now: invoicing, VAT, payroll, projects or stock.
- Ask your accountant which tool they prefer to work with.
- Check whether your bank includes FreeAgent at no extra cost.
- Trial Zoho Books if you expect to add CRM, inventory or staff.
- Plan any switch at a financial year end if possible.
Common questions
Is Zoho Books recognised for Making Tax Digital?
Zoho Books supports MTD for VAT submissions. Check HMRC's current list for any newer MTD requirements.
Can Zoho Books handle self-assessment?
Zoho Books focuses on business accounts. Self-assessment is usually handled by your accountant or separate software.
Sources and further reading
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Written by Flowpeak, a Zoho implementation partner. Zoho pricing and features change, so confirm current details on the official Zoho site. Free checklists | Ask us a question