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Getting started with FreeAgent – FAQs

17/12/18 | Advice & Guidance, Business, Expenses

We understand that is isn’t second nature to everybody to be able to pick up a phone and get started with a new app. We want to make sure you feel comfortable with using FreeAgent so you can get the most out of our services. We’re going to be answering some of your most common questions in a series of FAQs starting with todays ‘Getting Started’ post.

I already have a FreeAgent account, do I need to start over again with a new FreeAgent account?

We don’t blame you for already having FreeAgent, it is awesome after all. The good news is you can keep your existing account with all the data and the same existing login you already have. We will get the FreeAgent team to put your current account on our dashboard, which will make no differene to you and the even better news is, we incorporate the cost of FreeAgent into our monthly fee so we get billed for it!

How do I link my bank account to the system?

When starting up with FreeAgent, you’ll go through a process of entering your details to get you started. One of these steps includes entering your bank details so that we can build a picture of your business’s accounts.

Account name

Give the account a name such as “RBS Current Account” so that it’s easy to identify this account later, if you put in more bank accounts. Please see this article here for how to set up a new bank account once you’ve finished the Getting Started process.

By default FreeAgent assumes that all bank accounts are business bank accounts. But if you’re a sole trader, or a partner in a non-limited liability partnership, and you haven’t yet opened a dedicated bank account for your business, you can tick the box to make this a personal account.

Opening balance

The opening balance is the balance as at the start of the day on your FreeAgent start date – which is the balance as at the close of play on the previous day.

Sort code and account number

If you want to take advantage of FreeAgent’s quick and easy categorisation of your bank transactions by uploading your statements electronically from online banking, you’ll need to fill in your bank account’s sort code and account number. If you don’t want to do this, just leave these boxes blank.

You can add new bank accounts to your dashboard at a later date via the banking menu.


How do I enter Expenses?

Depending on your FreeAgent account type you will find the Expenses option in different locations. If you are a sole trader, and you have no staff, you’ll find expenses in the main menu. If you have staff, or your business is a partnership or limited company, you’ll find Expenses under a menu called my money.

Once you’re in the Expenses area, make sure you’ve selected the appropriate user (i.e. the person who spent the money) from the ‘Show’ drop-down menu. Now select ‘Add New Expense’.

  1. Choose whether this was a payment or refund.
  2. Choose a category for the expense. If you’re a UK based company registered for VAT, make sure it’s in the right area for VAT.
  3. Enter the date of the expense.
  4. Choose the currency that you used to pay for the expense.
  5. Enter the amount of the expense, as on the receipt.
  6. Put a description of what this was for (you might want to make a note of why the employee incurred it).
  7. If the expense is going to happen again in the future, you can use the Recur option to put it in again automatically.

That’s it! The expense has been added to the lists of costs incurred by this user. You can edit expenses up to and until you filed your VAT return.

How do I enter Mileage?

Following the steps the same to the Expenses page, once here you will find the option to ‘Add New Mileage’.

  1. Enter the date you made the journey.
  2. Enter how far you travelled (remember you may need to double the mileage for a return journey to record that you went out and back).
  3. Describe why this journey was undertaken. Make sure it’s clear whether this journey is allowable or not for tax.
  4. From the ‘vehicle type’ drop-down menu, choose the kind of vehicle your made this journey in.
  5. You need to be registered for VAT and have a VAT receipt for fuel enough to cover the mileage travelled on this journey if you want to reclaim VAT on the fuel. If you have a VAT receipt, choose that you want to claim for this mileage, and enter the fuel type of your vehicle and the capacity of its engine. FreeAgent will work out the correct VAT reclaim for you.
  6. You can now re-bill this mileage to a customer if it was incurred while working on a particular project.
  7. If you are going to be taking this journey again, use the Recurring option.
  8. You can attach a receipt of the fuel receipt here, particularly if you are claiming VAT on the fuel.

That’s it for now, you’re bank details are set and you know how to get your expenses input ready to start managing your accounts. We will be answering more of your FAQs over the next few weeks, if you want anything answering let us know!

For more information on how to use FreeAgent take a look at our client support video!


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