Sage Accounting vs Xero vs FreeAgent

Written head to head: Xero vs Sage Accounting, with when to choose each side.

Compared on	Sage Accounting From £20/mo VisitRemove	Xero From $27/mo VisitRemove	FreeAgent Free plan · from £8.33/mo VisitRemove
What it is	UK cloud accounting with payroll and the Sage Copilot AI assistant included in all three plans	Cloud accounting with three US plans, no per-user fees, Gusto payroll and the JAX AI assistant	UK accounting for sole traders, companies and landlords, free with a NatWest Group business account
Free plan	No	No	Free for as long as you hold a NatWest, Royal Bank of Scotland or Ulster Bank business current account, or a Mettle account with at least one transaction a month (Mettle is not listed for partnerships). Optional add-ons may be chargeable.
Cheapest paid plan	£20/mo (Start)Sage Accounting pricing	$27/mo (Early)Xero pricing	£8.33/mo billed annually (Landlord (unincorporated))FreeAgent pricing
What it covers	UK price excluding 20% VAT; 1 user; payroll for 1 employee included, then £1.85 per employee a month; no receipt capture. Promotion: 90% off (£2/month) for the first 6 months.	Per organization, no per-user licence fees; send quotes and 20 invoices, enter 5 bills; auto-reconcile is a $5/month add-on. Promotion: 90% off ($2.70/month) for the first 6 months for new US customers, until 2 November 2026.	For UK unincorporated landlords; excludes 20% VAT; £100 billed yearly. The Sole trader plan is £19/month (£190/year). Promotion: 50% off for the first 6 months on monthly billing, or the first year on annual billing.
Free trial	30 days free of Accounting Standard, taken instead of the 90%-off offer	One month free on any Xero plan	30-day free trial, no credit card required
Platforms	Web, iOS, Android	Web	Web, iOS, Android, API
Integrations (vendor's figure)	Not stated	Integrate with 1000+ apps	Integration partnerships including Dext, Engager.app, Bright and Syft
Open source	No	No	No
Good for	UK small businesses that want accounting and payroll in one subscription VAT-registered sole traders filing Making Tax Digital VAT returns Construction businesses that submit CIS returns	Small businesses that want several people in the books without per-user fees Businesses that work closely with an accountant or bookkeeper Companies that bill or pay in foreign currencies	UK sole traders preparing for Making Tax Digital for Income Tax Limited company directors who file Corporation Tax and run payroll themselves NatWest, RBS, Ulster Bank or Mettle customers who want free accounting
Watch out for	Sold on Sage's UK site in GBP excluding VAT; Sage's US site lists Sage 50 and Sage Intacct, not Sage Accounting Start has 1 user and no receipt capture; Standard is capped at 3 users Budgets, inventory and multi-currency need the Plus plan	Early caps you at 20 invoices and 5 bills, and auto-reconcile costs $5 a month extra Multi-currency, projects and expense claims need Established ($97/mo) Payroll costs $36 a month plus $6 per person through Gusto	Built for UK businesses: plans cover HMRC filings and prices are in GBP excluding VAT Smart Capture covers 10 receipts and bills a month unless you pay £5 a month Accounts set up on the cash basis do not include stock or payroll features
Made by	Sage Group plc	Xero Limited	FreeAgent Central Limited

Entry prices are the cheapest paid plan, as each vendor publishes it; “What it covers” says what that price is per (a user, a channel, a brand, a number of contacts). The sources are listed on each tool's page.

Every tool in accounting and invoicing software is on its category page, with the written head-to-heads on Compare.