FreeAgent vs Digits
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
FreeAgent
FreeAgent is a cloud accounting platform designed specifically for freelancers, contractors, and small businesses in the UK. It offers automatic bank feeds, invoicing, expense management, and self-assessment tax return preparation. FreeAgent is particularly popular with UK freelancers and contractors for its excellent handling of UK tax requirements including Self Assessment and VAT returns.
Digits
Digits is a modern financial intelligence platform for small businesses that connects to your accounts and uses AI to surface insights, trends, and anomalies in your finances automatically.
Pros
- ✓Excellent UK tax compliance including Self Assessment and VAT returns
- ✓Designed specifically for freelancers and contractors
- ✓Clean and easy to use interface
- ✓Automatic bank feeds save significant time
Cons
- ✗Primarily suited for UK market — limited value for non-UK businesses
- ✗Less feature-rich than QuickBooks for complex business needs
- ✗Smaller integration ecosystem than larger competitors
- ✗Not suitable for larger businesses with complex accounting needs
Pros
- ✓AI-powered financial insights
- ✓Clean modern interface
- ✓Automatic anomaly detection
- ✓Good cash flow visibility
- ✓Integrates with existing accounting tools
Cons
- ✗Not a full accounting replacement
- ✗US-focused
- ✗Still a newer platform
- ✗Limited tax filing features
- ✗Best as a complement to existing accounting software
FreeAgent vs Digits: Side by Side
| Factor | FreeAgent | Digits |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $12/mo | Contact for pricing |
| Best For | UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools | Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software |
| Our Pick | — | — |
FreeAgent Features
- ✓Invoicing
- ✓expense management
- ✓bank feeds
- ✓time tracking
- ✓project management
- ✓self-assessment tax returns
- ✓VAT returns
- ✓payroll
- ✓financial reporting
- ✓mobile app
Digits Features
- ✓AI bookkeeping
- ✓transaction categorization
- ✓cash flow insights
- ✓financial reporting
- ✓bank feed integration
Pricing Comparison
Our Take
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Digits if small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
Best For
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Best For
Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software
How FreeAgent and Digits Are Similar
- •Both are Accounting Software platforms designed for business teams
- •Both offer web-based access with no software installation required
- •Both provide customer support and onboarding resources
- •Both integrate with popular third-party business tools
- •Both offer a trial or demo to evaluate before purchasing
Also Consider
If neither FreeAgent nor Digits is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between FreeAgent and Digits?
FreeAgent is best for uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Digits is best for small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
Which is better, FreeAgent or Digits?
Choose FreeAgent if uk freelancers and contractors wanting simple accounting with strong self assessment and vat tools. Choose Digits if small business owners wanting ai-powered financial insights and visibility on top of their existing accounting software.
How much does FreeAgent cost?
FreeAgent starts at $12/mo. Pricing model: Paid.
How much does Digits cost?
Visit Digits website for current pricing.
Who should use FreeAgent?
UK freelancers and contractors wanting simple accounting with strong Self Assessment and VAT tools
Who should use Digits?
Small business owners wanting AI-powered financial insights and visibility on top of their existing accounting software