Navigate to ‘Banking’ at the top of the screen and select ‘Bank Accounts’ from the drop-down menu.
Choose the relevant bank account from the list.
When you explain or manually enter the transaction, record the capital asset as one of the asset purchase types and enter what the asset's useful life will be. If you’d like to add new 'capital asset types', follow the steps in this article.
For capital assets, it's important to include a detailed description of the asset, and, if you can, to upload a scanned image of the receipt or bill showing the purchase of the asset. Capital assets are tax-sensitive and your accountant, or a tax inspector, may need to see further information.
Categorising different transactions as capital assets
Categorise the transaction using one of the asset purchase categories, which are at the bottom of the category list, when you enter a bill or expense.
If you're explaining a bank payment or entering the bank transaction manually you need to choose 'Purchase of Capital Asset' for the transaction type, under the 'Money Out' list and then choose one of the asset types.
Choose the asset's life from the drop-down menu.
Enter a detailed description of the asset. This is to help your accountant or an HMRC inspector, as assets are a tax-sensitive area.
You can upload a scanned image of the receipt by choosing 'Select a file' from the 'File to attach' area. If you have a receipt, invoice or bill, saved as an image file (PNG or JPEG) or PDF on your mobile device or as an email attachment, you can import it into your 'Files' area using the FreeAgent mobile app. To upload an imported file, select 'Choose from saved files' instead and follow the instructions.
Viewing the asset in your books
Navigate to the 'Accounting' tab at the top of the screen and select 'Reports' from the drop-down menu.
You'll see that FreeAgent has entered in the asset's cost and has started to calculate its depreciation.
So that's all you need to do to make it do that. Just explain the bill, bank payment or out-of-pocket expense, as one of the different types of capital asset, and choose the asset life span. FreeAgent will do the rest.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
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