FreeAgent vs Melio: Complete Comparison 2026
An in-depth comparison of features, pricing, and user experience to help you make the right choice.
FreeAgent
8.0(2,800 reviews)
UK cloud accounting built for freelancers and micro-businesses. Free for NatWest/RBS business account holders.
Melio
8.2(1,850 reviews)
Free B2B payment platform that lets small businesses pay vendors by bank transfer or credit card with approval workflows.
Quick Comparison
| Aspect | FreeAgent | Melio |
|---|---|---|
| Best For | UK freelancers and sole traders | Small businesses paying multiple vendors monthly |
| Pricing Model | Subscription | Freemium |
| Starting Price | $19/mo | Free |
| Deployment | cloud | cloud |
| Platforms | WEB, IOS, ANDROID | WEB, IOS, ANDROID |
| Rating | 8.0/10 | 8.2/10 |
Pros & Cons
FreeAgent
Pros
- UK tax compliance is exceptional - Self Assessment, VAT, Corporation Tax all handled
- Free for NatWest, RBS, and Ulster Bank business customers
- Built-in time tracking that connects directly to invoicing
- Multi-currency support handles international client billing well
- Interface is genuinely easy to learn for non-accountants
Cons
- You'll outgrow it if your team passes 10 people
- No purchase order or inventory management system
- Reporting is basic compared to Xero or QuickBooks
- Limited usefulness outside the UK due to tax specificity
- No payroll for employees beyond director payroll
Melio
Pros
- Bank transfers are completely free with no hidden fees
- QuickBooks and Xero sync works flawlessly - zero manual reconciliation
- Approval workflows prevent unauthorized payments on shared accounts
- Pay any vendor by credit card even if they only accept checks
- Setup takes under 10 minutes with no contracts required
Cons
- Not accounting software - only handles outgoing payments
- No international payment support for overseas vendors
- 2.9% credit card fee gets expensive on large invoices over $5,000
- Bank transfers take 2-3 business days unless you pay for expedited
- Limited reporting beyond basic payment history
Pricing Comparison
| Product | Pricing Model | Starting Price |
|---|---|---|
| FreeAgent | subscription | $19/mo |
| Melio | freemium | Free0 |
Our Verdict
Choose FreeAgent if...
UK freelancers and sole traders
Choose Melio if...
Small businesses paying multiple vendors monthly
Still Not Sure?
Explore more alternatives or read in-depth reviews to make your decision.