How to integrate Freeagent MCP with Vercel AI SDK v6

Connect Vercel AI SDK v6 to Freeagent MCP. List overdue invoices for this month, create a new expense for office supplies, and more using natural language, with authentication handled for you.

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Freeagent is a cloud-based accounting platform designed for freelancers and small businesses. It simplifies bookkeeping, invoicing, and expense management in one place.

76 Tools

Introduction

This guide walks you through connecting Freeagent to Vercel AI SDK v6 using the Composio tool router. By the end, you'll have a working Freeagent agent that can list overdue invoices for this month, create a new expense for office supplies, summarize all unassigned transactions through natural language commands.

This guide will help you understand how to give your Vercel AI SDK agent real control over a Freeagent account through Composio's Freeagent MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

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TL;DR

Here's what you'll learn:
  • How to set up and configure a Vercel AI SDK agent with Freeagent integration
  • Using Composio's Tool Router to dynamically load and access Freeagent tools
  • Creating an MCP client connection using HTTP transport
  • Building an interactive CLI chat interface with conversation history management
  • Handling tool calls and results within the Vercel AI SDK framework

What is Vercel AI SDK?

The Vercel AI SDK is a TypeScript library for building AI-powered applications. It provides tools for creating agents that can use external services and maintain conversation state.

Key features include:

  • streamText: Core function for streaming responses with real-time tool support
  • MCP Client: Built-in support for Model Context Protocol via @ai-sdk/mcp
  • Step Counting: Control multi-step tool execution with stopWhen: stepCountIs()
  • OpenAI Provider: Native integration with OpenAI models

What is the Freeagent MCP server, and what's possible with it?

The Freeagent MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Freeagent account. It provides structured and secure access to your accounting records, so your agent can create invoices, record timeslips, review expenses, monitor cash flow, and track tax deadlines on your behalf.

  • Invoices, estimates, and credit notes: Have your agent create invoices, estimates, and credit notes, convert estimates into invoices, or convert eligible invoices into credit notes.
  • Financial reporting: Let the agent retrieve cash flow, profit and loss, trial balance, balance sheet, opening balance, and accounting transaction details for your business.
  • Expenses, bills, and banking: Direct your agent to list or update expenses, create bills with attachments, review bills and bank transactions, or create and list bank accounts.
  • Contacts, projects, and time tracking: Instruct your agent to create contacts and projects, review existing records, and add timeslips for completed work.
  • Tax and VAT planning: Have your agent list VAT returns and check your company tax timeline for upcoming events and deadlines.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before you begin, make sure you have:
  • Node.js and npm installed
  • A Composio account with API key
  • An OpenAI API key
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install required dependencies

bash
npm install @ai-sdk/openai @ai-sdk/mcp @composio/core ai dotenv

First, install the necessary packages for your project.

What you're installing:

  • @ai-sdk/openai: Vercel AI SDK's OpenAI provider
  • @ai-sdk/mcp: MCP client for Vercel AI SDK
  • @composio/core: Composio SDK for tool integration
  • ai: Core Vercel AI SDK
  • dotenv: Environment variable management
4

Set up environment variables

bash
OPENAI_API_KEY=your_openai_api_key_here
COMPOSIO_API_KEY=your_composio_api_key_here
COMPOSIO_USER_ID=your_user_id_here

Create a .env file in your project root.

What's needed:

  • OPENAI_API_KEY: Your OpenAI API key for GPT model access
  • COMPOSIO_API_KEY: Your Composio API key for tool access
  • COMPOSIO_USER_ID: A unique identifier for the user session
5

Import required modules and validate environment

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});
What's happening:
  • We're importing all necessary libraries including Vercel AI SDK's OpenAI provider and Composio
  • The dotenv/config import automatically loads environment variables
  • The MCP client import enables connection to Composio's tool server
6

Create Tool Router session and initialize MCP client

typescript
async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["freeagent"],
  });

  const mcpUrl = session.mcp.url;
What's happening:
  • We're creating a Tool Router session that gives your agent access to Freeagent tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned mcp object contains the URL and authentication headers needed to connect to the MCP server
  • This session provides access to all Freeagent-related tools through the MCP protocol
7

Connect to MCP server and retrieve tools

typescript
const mcpClient = await createMCPClient({
  transport: {
    type: "http",
    url: mcpUrl,
    headers: session.mcp.headers, // Authentication headers for the Composio MCP server
  },
});

const tools = await mcpClient.tools();
What's happening:
  • We're creating an MCP client that connects to our Composio Tool Router session via HTTP
  • The mcp.url provides the endpoint, and mcp.headers contains authentication credentials
  • The type: "http" is important - Composio requires HTTP transport
  • tools() retrieves all available Freeagent tools that the agent can use
8

Initialize conversation and CLI interface

typescript
let messages: ModelMessage[] = [];

console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
console.log(
  "Ask any questions related to freeagent, like summarize my last 5 emails, send an email, etc... :)))\n",
);

const rl = readline.createInterface({
  input: process.stdin,
  output: process.stdout,
  prompt: "> ",
});

rl.prompt();
What's happening:
  • We initialize an empty messages array to maintain conversation history
  • A readline interface is created to accept user input from the command line
  • Instructions are displayed to guide the user on how to interact with the agent
9

Handle user input and stream responses with real-time tool feedback

typescript
rl.on("line", async (userInput: string) => {
  const trimmedInput = userInput.trim();

  if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
    console.log("\nGoodbye!");
    rl.close();
    process.exit(0);
  }

  if (!trimmedInput) {
    rl.prompt();
    return;
  }

  messages.push({ role: "user", content: trimmedInput });
  console.log("\nAgent is thinking...\n");

  try {
    const stream = streamText({
      model: openai("gpt-5"),
      messages,
      tools,
      toolChoice: "auto",
      stopWhen: stepCountIs(10),
      onStepFinish: (step) => {
        for (const toolCall of step.toolCalls) {
          console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});
What's happening:
  • We use streamText instead of generateText to stream responses in real-time
  • toolChoice: "auto" allows the model to decide when to use Freeagent tools
  • stopWhen: stepCountIs(10) allows up to 10 steps for complex multi-tool operations
  • onStepFinish callback displays which tools are being used in real-time
  • We iterate through the text stream to create a typewriter effect as the agent responds
  • The complete response is added to conversation history to maintain context
  • Errors are caught and displayed with helpful retry suggestions

Complete Code

Here's the complete code to get you started with Freeagent and Vercel AI SDK:

typescript
import "dotenv/config";
import { openai } from "@ai-sdk/openai";
import { Composio } from "@composio/core";
import * as readline from "readline";
import { streamText, type ModelMessage, stepCountIs } from "ai";
import { createMCPClient } from "@ai-sdk/mcp";

const composioAPIKey = process.env.COMPOSIO_API_KEY;
const composioUserID = process.env.COMPOSIO_USER_ID;

if (!process.env.OPENAI_API_KEY) throw new Error("OPENAI_API_KEY is not set");
if (!composioAPIKey) throw new Error("COMPOSIO_API_KEY is not set");
if (!composioUserID) throw new Error("COMPOSIO_USER_ID is not set");

const composio = new Composio({
  apiKey: composioAPIKey,
});

async function main() {
  // Create a tool router session for the user
  const session = await composio.create(composioUserID!, {
    toolkits: ["freeagent"],
  });

  const mcpUrl = session.mcp.url;

  const mcpClient = await createMCPClient({
    transport: {
      type: "http",
      url: mcpUrl,
      headers: session.mcp.headers, // Authentication headers for the Composio MCP server
    },
  });

  const tools = await mcpClient.tools();

  let messages: ModelMessage[] = [];

  console.log("Chat started! Type 'exit' or 'quit' to end the conversation.\n");
  console.log(
    "Ask any questions related to freeagent, like summarize my last 5 emails, send an email, etc... :)))\n",
  );

  const rl = readline.createInterface({
    input: process.stdin,
    output: process.stdout,
    prompt: "> ",
  });

  rl.prompt();

  rl.on("line", async (userInput: string) => {
    const trimmedInput = userInput.trim();

    if (["exit", "quit", "bye"].includes(trimmedInput.toLowerCase())) {
      console.log("\nGoodbye!");
      rl.close();
      process.exit(0);
    }

    if (!trimmedInput) {
      rl.prompt();
      return;
    }

    messages.push({ role: "user", content: trimmedInput });
    console.log("\nAgent is thinking...\n");

    try {
      const stream = streamText({
        model: openai("gpt-5"),
        messages,
        tools,
        toolChoice: "auto",
        stopWhen: stepCountIs(10),
        onStepFinish: (step) => {
          for (const toolCall of step.toolCalls) {
            console.log(`[Using tool: ${toolCall.toolName}]`);
          }
          if (step.toolCalls.length > 0) {
            console.log(""); // Add space after tool calls
          }
        },
      });

      for await (const chunk of stream.textStream) {
        process.stdout.write(chunk);
      }

      console.log("\n\n---\n");

      // Get final result for message history
      const response = await stream.response;
      if (response?.messages?.length) {
        messages.push(...response.messages);
      }
    } catch (error) {
      console.error("\nAn error occurred while talking to the agent:");
      console.error(error);
      console.log(
        "\nYou can try again or restart the app if it keeps happening.\n",
      );
    } finally {
      rl.prompt();
    }
  });

  rl.on("close", async () => {
    await mcpClient.close();
    console.log("\n👋 Session ended.");
    process.exit(0);
  });
}

main().catch((err) => {
  console.error("Fatal error:", err);
  process.exit(1);
});

Conclusion

You've successfully built a Freeagent agent using the Vercel AI SDK with streaming capabilities! This implementation provides a powerful foundation for building AI applications with natural language interfaces and real-time feedback.

Key features of this implementation:

  • Real-time streaming responses for a better user experience with typewriter effect
  • Live tool execution feedback showing which tools are being used as the agent works
  • Dynamic tool loading through Composio's Tool Router with secure authentication
  • Multi-step tool execution with configurable step limits (up to 10 steps)
  • Comprehensive error handling for robust agent execution
  • Conversation history maintenance for context-aware responses

You can extend this further by adding custom error handling, implementing specific business logic, or integrating additional Composio toolkits to create multi-app workflows.
TOOLS

Supported Tools

Every Freeagent action and event your agent gets out of the box.

Cashflow summary for a date range

Tool to retrieve cashflow summary for a given date range from FreeAgent.

Get Company Details

Tool to retrieve company details from FreeAgent.

Create a Journal Set

Tool to create a journal set in FreeAgent.

Create Sales Tax Period

Tool to create a sales tax period in FreeAgent.

Create Task Under Project

Tool to create a task under a specific project in FreeAgent.

Create A Timeslip

Tool to create a new timeslip in FreeAgent.

Create a User

Tool to create a new user in FreeAgent.

Create Bank Account

Tool to create a bank account in FreeAgent.

Create Bill with Attachment

Tool to create a bill with optional attachment in FreeAgent.

Create Category

Tool to create a custom category in FreeAgent.

Create Contact

Tool to create a new contact in FreeAgent.

Create Credit Note

Tool to create a credit note in FreeAgent.

Create Credit Note Reconciliation

Tool to create a credit note reconciliation in FreeAgent.

Create Estimate

Tool to create a new estimate in FreeAgent.

Create Estimate Item

Tool to create an estimate item in FreeAgent.

Duplicate Estimate

Tool to duplicate an existing estimate in FreeAgent.

Send Estimate Email

Tool to email an estimate in FreeAgent.

Create Invoice

Tool to create an invoice in FreeAgent.

Create Invoice Item

Tool to create an invoice item in FreeAgent.

Duplicate Invoice

Tool to duplicate an existing invoice in FreeAgent.

Create Note

Tool to create a note for a contact or project in FreeAgent.

Create Price List Item

Tool to create a price list item in FreeAgent.

Create Project

Tool to create a project in FreeAgent.

Delete Bank Transaction Explanation

Tool to delete a bank transaction explanation in FreeAgent.

Delete Estimates Default Additional Text

Tool to delete default additional text for estimates in FreeAgent.

Delete Note

Tool to delete a note by its ID.

Get Invoice Timeline

Tool to retrieve invoice timeline showing chronological record of invoice-related events.

Get Mileage Settings

Tool to retrieve mileage settings including engine type/size options and reimbursement rates.

Get Opening Balances

Tool to retrieve the Opening Balances journal set for a company.

Get Personal Profile

Tool to retrieve the authenticated user's personal profile from FreeAgent.

Get the Opening Balances

Tool to retrieve the opening balances from the trial balance summary.

Get the P&L summary

Tool to retrieve the Profit and Loss summary for a specified period from FreeAgent.

Get Trial Balance Summary

Tool to get the trial balance summary from FreeAgent.

Get Balance Sheet

Tool to retrieve the balance sheet for a FreeAgent account.

Get Opening Balances

Tool to retrieve opening balances for the balance sheet from FreeAgent.

List Accounting Transactions

Tool to list all accounting transactions from FreeAgent.

List All CIS Bands

Tool to list all CIS (Construction Industry Scheme) bands for a company.

List All Expenses

Tool to list all expenses from FreeAgent.

List All Price List Items

Tool to list all price list items from FreeAgent.

List All Properties

Tool to list all properties in FreeAgent.

List All Recurring Invoices

Tool to retrieve a list of recurring invoices from FreeAgent.

List All Sales Tax Periods

Tool to list all sales tax periods for a company in FreeAgent.

List All Stock Items

Tool to list all stock items from FreeAgent.

List All Tasks

Tool to list all tasks in FreeAgent.

List All Timeslips

Tool to list all timeslips from FreeAgent.

List All Users

Tool to list users in FreeAgent.

List Bank Accounts

Tool to list bank accounts in FreeAgent.

List Bank Feeds

Tool to list all bank feeds for a company.

List Bank Transactions

Tool to list all bank transactions under a certain bank account in FreeAgent.

List Bills

Tool to retrieve a list of bills from FreeAgent.

List Business Categories

Tool to retrieve all available business categories from FreeAgent.

List Categories

Tool to retrieve all categories for the current FreeAgent company.

List Contacts

Tool to list contacts in FreeAgent.

List Credit Note Reconciliations

Tool to retrieve all credit note reconciliations from FreeAgent.

List Credit Notes

Tool to list credit notes from FreeAgent.

List EC MOSS Sales Tax Rates

Tool to retrieve EC VAT MOSS sales tax rates for a specific EU country and date.

List Estimates

Tool to list estimates in FreeAgent.

Get Default Estimates Additional Text

Tool to retrieve the default additional text for estimates.

List Final Accounts Reports

Tool to list final accounts reports for a company in FreeAgent.

List Hire Purchases

Tool to retrieve all hire purchases for the authorized FreeAgent account.

Get Default Additional Text

Tool to get the default additional text shown on all invoices.

List Notes

Tool to retrieve a list of notes for a contact or project.

List Projects

Tool to list projects in FreeAgent.

List VAT Returns

Tool to list VAT returns for a company in FreeAgent.

Show Tax Timeline

Tool to retrieve the company's tax timeline showing upcoming tax events and deadlines.

Update Bank Transaction Explanation

Tool to update a bank transaction explanation in FreeAgent.

Update Estimates Default Additional Text

Tool to update the default additional text for estimates in FreeAgent.

Convert Estimate to Invoice

Tool to convert an estimate to an invoice in FreeAgent.

Update Expense

Tool to update an existing expense in FreeAgent.

Update Invoices Default Additional Text

Tool to update the default additional text shown on all invoices.

Convert Invoice to Credit Note

Tool to convert a draft negative invoice to a credit note in FreeAgent.

Update a Journal Set

Tool to update a journal set in FreeAgent.

Update Note

Tool to update an existing note in FreeAgent.

Update Price List Item

Tool to update a price list item in FreeAgent.

Update Personal Profile

Tool to update the authenticated user's personal profile in FreeAgent.

Upload a Bank Statement

Tool to upload a bank statement to FreeAgent.

FAQ

Frequently asked questions

With a standalone Freeagent MCP server, the agents and LLMs can only access a fixed set of Freeagent tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Freeagent and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Vercel AI SDK v6 fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Freeagent tools.

Yes, absolutely. You can configure which Freeagent scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Freeagent data and credentials are handled as safely as possible.

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