This article explains how to record income if you don't want to create sales invoices in FreeAgent.
The most common way to record income in FreeAgent is by creating invoices. HMRC guidance states that you must nearly always provide VAT invoices to your customers if your business is registered for VAT.
However, there may be scenarios when you don’t want to or don’t need to create sales invoices. For example, if you’re entering historic income into FreeAgent or you’re not registered for VAT and are taking payment up front from your customers, but don't usually issue them an invoice.
You can enter a description to identify what the income relates to in the ‘Description’ field.
If you have any paperwork that relates to the transaction (e.g. a receipt), you can attach a scanned copy to the explanation by selecting ‘Upload a file’ and following the instructions. If you previously used the FreeAgent mobile app to capture an image file and save it to the 'Files' area of your account, select 'Choose from saved files' and follow the instructions.
Please note that attaching an image file to a transaction will remove it from the ‘Files’ area of your FreeAgent account. If you have attached a file to an email template, the file will be locked in the ‘Files area’ and you won’t be able to attach it to a transaction. If you want to attach a locked file, follow these steps.
Select ‘Explain Transaction’ to complete the process.
For information on how to explain multiple transactions at once, please see this article.
A record of the bank transaction(s) being explained will appear in your Audit Trail report.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
Registered in sunny Scotland No. SC316774 - One Edinburgh Quay, 133 Fountainbridge, Edinburgh, Scotland, UK EH3 9QG