Which bookkeeping tool should you go with?
You said the spreadsheets aren’t working anymore, and you want something that can send VAT returns straight to HMRC, connect to HubSpot, and be easy enough for the office manager to use. You also wanted to stay under £45 a month.
So those are the things I went by. I looked at FreeAgent, Xero and QuickBooks.
First I had to work out which plan to compare, because the cheapest plan isn’t always one you can actually use. Xero’s Ignite plan only lets you send 20 invoices a month. QuickBooks’ Simple Start plan only gives you one login, and you and the office manager would both need to get in. So I went one plan up on both.
I left payroll out because your accountant already handles that. For ease of use, I went by the scores on Trustpilot, since customers are the ones using these every day.
Side by side, before VAT
| What I compared |
FreeAgent |
Xero |
QuickBooks |
| Plan |
Limited company |
Grow |
Essentials |
| Cost |
£33 a month |
£39 a month |
£40 a month |
| Trustpilot |
4.6 |
4.1 |
3.7 |
| VAT to HMRC |
Yes |
Yes |
Yes |
| HubSpot |
Yes |
Yes, but I’d test it |
Not sure it works for the UK |
What I thought about each one
FreeAgent
This one came out on top for me. It’s the cheapest of the three, and people seem to really like it. It sends VAT returns to HMRC and connects to HubSpot. One thing I noticed is that it’s free if the company banks with NatWest, Royal Bank of Scotland or Ulster Bank, or uses Mettle at least once a month, so I’d check that first.
Xero
Xero can do everything you asked for. My only worry is HubSpot. The connection is there, but people using it have rated it pretty low, 2.2 out of 5, and it has some limits around invoices. I’d want to test it before choosing it.
QuickBooks
This was the easiest one to cross off. It costs the most and has the lowest Trustpilot score. The HubSpot connection worried me too. It’s rated 2.1 out of 5, the listing doesn’t mention the UK, and some people in the reviews had problems with tax outside the US.
What I’d do
I’d go with FreeAgent. It does the three things you asked for, it’s the cheapest, and its customers seem the happiest. All three had deals for new customers when I looked, and FreeAgent was still the cheapest for the first year, at £165 if you pay annually.
Before you commit, I’d do two things. I’d use the 30 day free trial to make sure HubSpot syncs properly with a few real invoices, and I’d ask your accountant if they’re okay working in it. If your accountant would rather use Xero, that’s fine too. It’s only £6 more a month and it should still do the job.
Prices do change, so it’s worth checking before you sign up. If you want to look for yourself, here’s the pricing for FreeAgent, Xero and QuickBooks, and the reviews for FreeAgent, Xero and QuickBooks.