Xero vs Federation of Small Businesses MTD: Which Is Better Accounting Software?

We compare them based on real user reviews, prices and what features they both offer.

Xero vs Federation of Small Businesses MTD Basics

	Xero	Federation of Small Businesses MTD
Software Website	Xero Website	Federation of Small Businesses MTD Website
HMRC MTD Status	Approved	In Development
Who Can Use It?	Agents and businesses	Businesses
HMRC Listed Features	Digital record keeping, Updates to HMRC for self-employment, Tax estimates from HMRC based on provided updates, Updates to HMRC for UK property	None
Platforms	Web-based application, Android, iOS	Web-based application, Android, and iOS

Note data for this section comes from HMRC here and here

Wondering if Xero or Federation of Small Businesses MTD has better user reviews. We compared them below.

	Xero	Federation of Small Businesses MTD
Trustpilot Rating	4.3	No Rating
Number of Trustpilot Reviews	6017	No Reviews
iPhone App Rating	4.7	No Rating
Number of iPhone Reviews	12700	No Reviews
Android App Rating	4.6	No Rating
Number of Android Reviews	11900	No Reviews

Please note ratings we’re accurate at the time of writing but may have since changed

Which is cheaper Xero or Federation of Small Businesses MTD? Here are their prices compared.

	Xero	Federation of Small Businesses MTD
Free Plan?	No	Yes
Free Trial?	Yes	No
Free Trial Length?	30 days	No

Data taken from each company’s website at the time of writing but may have since changed.

	Xero	Federation of Small Businesses MTD
Cheapest Plan Cost Per Month	£7.50	£8.40
Mid-Tier Plan Cost Per Month	£15.00	£16.80
Top Plan Cost Per Month	£27.50	£30.00

Data taken from each company’s website at the time of writing but may have since changed.

Not Listed

	Xero	Federation of Small Businesses MTD
Payroll Software Integration	Yes	No
Track VAT	Yes	Yes
VAT Filing	Yes	Yes
Real-Time Financial Reports	Yes	No
Prepare Self Assessment	Yes	Yes
Income Tax Estimates	Yes	Yes
Manage Income & Expenses	Yes	Yes
Create Invoices	Yes	Yes
Forecast Cash Flow	Yes	No
Accept and Make Payments In Different Currencies	Yes	No
Employee Time Tracking	Yes	Yes
Projects	Yes	No
Bank Feed Integration	Yes	Yes
End of Year Filings	Yes	No
Capture Bills And Receipts	Yes	Yes
Bulk Reconcile Transactions	Yes	Yes
Track Inventory & Stock Levels	Yes	No

	Xero	Federation of Small Businesses MTD
Pros	User Friendly User Interface Saves Time Integrations Cloud Based	Free plan MTD VAT compliant Create simple or multi-line estimates
Cons	Expense Report Issues Not User Friendly Expensive Room for Improvement Technical Issues	Lack of reviews