What the FreeAgent start date means for new businesses
This article explains what the ‘FreeAgent start date’ means for new businesses that plan to start trading soon, or have recently started trading and have not been using another accounting software package.
If you're setting up FreeAgent for an established business that has been trading for a while, please see this article for existing businesses instead.
What is the FreeAgent start date?
When you set up your FreeAgent account, you'll be asked to enter a FreeAgent start date. This is the date from which you will start keeping your books in FreeAgent.
If your business is new, you may decide to start keeping your books in FreeAgent from the date that your business officially started. If your FreeAgent account is for a sole trader or partnership, this will be the same date that you notified HMRC that the business started trading. If your FreeAgent account is for a limited company, this will be the incorporation date for the business, which can be found on the certificate of incorporation issued by Companies House.
For information on viewing and editing your FreeAgent start date, please see this article.
Why is the FreeAgent start date important?
All bank transactions, invoices, bills, out-of-pocket expenses, capital assets and journal entries entered into FreeAgent need to be dated on or after your FreeAgent start date. If you enter any of these with a date before your FreeAgent start date, they will not be counted in FreeAgent.
Out-of-pocket expenses and capital assets before the FreeAgent start date
If you spent money on the business before it officially started, enter the out-of-pocket expense dated on your FreeAgent start date. For more information, please see this article.
For information on recording the purchase of a capital asset dated before your FreeAgent start date, please see this article.
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Articles in this section
- How to get started with FreeAgent
- How to get help with using FreeAgent
- How to set up your FreeAgent account
- How to choose the appropriate account type for a charity
- How to choose the appropriate accounting basis
- Accounting dates in FreeAgent
- Temporary limitations on new FreeAgent accounts
- What the FreeAgent start date means for new businesses