# FreeAgent vs Zoho Books for small businesses

> Source: https://tickmarkbooks.com/compare/freeagent-vs-zoho-books (structured, researched, re-verified)
> Updated: 27 October 2026

FreeAgent starts at £10 a month (about $13), priced by business type. Every paid plan is advertised at 50% off for the first six months, or the first year on annual billing, before the regular published price applies. Zoho Books starts at $20 a month, its standing month-to-month rate, and also has a Free plan.

FreeAgent is built around UK bank feeds and HMRC filing. It files End of Year accounts, Payroll, Self Assessment and VAT to HMRC or Companies House. A US and a global edition exist with configurable sales tax reporting, but it files no 1099s. Zoho Books is sold to US businesses with US sales tax. It tracks contractors and W-9s on every plan and e-files 1099-MISC and 1099-NEC with the IRS. A separate UK edition files MTD VAT to HMRC.

FreeAgent's Guess feature categorizes imported bank transactions using your own past explanations, so each correction feeds the next suggestion. In Zoho Books, Zia pre-fills the account and vendor on each bank line, and Zoho does not say it learns from your corrections. Zoho Books tracks mileage by GPS in its mobile apps and turns it into an expense, on every plan including Free. In FreeAgent you log mileage claims by hand at HMRC's allowable rates.

Running a second business on FreeAgent means a second account and subscription. Zoho Books holds several businesses as separate organizations under one login, each with its own subscription. Zoho says it moves your books from QuickBooks or Xero at no charge. FreeAgent imports contacts and up to two years of bank transactions, but old invoices and bills need a third-party tool such as Dext. FreeAgent keeps accruals-basis books with limited-company Final Accounts, and offers a Cashflow forecast rather than a monthly cash flow statement. Zoho Books has a cash flow statement among more than 70 built-in reports, but does not say whether its books are kept on a cash or accrual basis.

| Fact | FreeAgent | Zoho Books |
| --- | --- | --- |
| What it is | UK cloud accounting with HMRC filing, bank feeds and AI receipt capture, priced per business type. | Cloud accounting ledger with Zia AI, bank feeds, sales tax and 1099 e-filing, from $20 a month. |
| Pricing | from about $13 a month | free, then $20 a month |
| Promotion and regular price | Yes | No |
| Users included | - | Yes |
| Setup or onboarding fee | No | - |
| Notice before a price rise | Yes | - |
| What the AI costs | Partly (Smart Capture Unlimited add-on) | Yes |
| Categorizes transactions | Yes | Partly |
| Pays your bills | Partly | Partly (BillPay add-on add-on) |
| Accrual books and reports | Partly | Yes |
| People check the books | No | - |
| Your accountant can sign in | Yes | Partly |
| Stripe | Yes | Partly |
| Shopify | No | Partly |
| PayPal | Yes | Partly |
| Square | No | Partly |
| Payroll | Yes | Partly (Zoho Payroll integration add-on) |
| Moves your history in | Partly | Yes |
| Files your tax return | Yes | - |
| Files 1099s | No | Yes |
| Quarterly tax estimates | Yes | - |
| Files sales tax | Partly | Partly (Avalara Marketplace integration add-on) |
| Inventory | Partly | Partly (Professional plan and up) |
| Other currencies | Yes | Partly (Professional plan and up) |
| Mileage | Partly | Yes |
| Billable time | Yes | Partly (Professional plan and up) |
| Profit by project or job | Yes | Partly (Professional plan and up) |
| SOC 2 report | - | Yes |
| Several businesses | No | Yes |
| Canada | No | Yes |
| Australia | No | Yes |
| API | — | — |
| Tags | — | — |
| Best for | UK sole traders and small limited companies filing their own VAT and Self Assessment | small businesses and startups that want one ledger plus the wider Zoho app suite |
| Full facts | https://tickmarkbooks.com/freeagent.md | https://tickmarkbooks.com/zoho-books.md |

## Verdict: FreeAgent or Zoho Books?

Pick FreeAgent if you are a UK sole trader or run a small limited company and file your own VAT and Self Assessment. It files to HMRC and Companies House from inside the books, and its bank categorization learns from your corrections. You can invite your accountant into the same books, and the plan price is per business, not per seat. Pick Zoho Books if you run a US business that pays contractors and needs 1099 e-filing with the IRS. Pick it too if you want several businesses under one login or are moving your books from QuickBooks or Xero. It also fits a startup that wants its ledger alongside the wider Zoho app suite.