Begin by selecting ‘Connections’ from the drop-down menu at the top-right of the screen.
From there, select 'Manage GoCardless'.
Select ‘Connect with GoCardless’ on the GoCardless welcome screen in FreeAgent.
2 Sign in to GoCardless or create your GoCardless Account
If you've never used GoCardless before, you can create a new account here before signing in. If you already have a GoCardless account, simply sign in to connect your GoCardless account to FreeAgent.
Once you’re signed in, you can confirm the connection between FreeAgent and GoCardless. This will enable the integration.
Once you’ve set up the integration, your customers can authorise a Direct Debit mandate, which will allow you to take payments automatically, up to a maximum of £5,000 per month. If you need to increase this limit, contact GoCardless directly.
3 Auto-reconciling invoices
Once you’ve enabled the GoCardless integration, you can set FreeAgent to automatically mark invoices as paid when GoCardless pays the money into your bank account. This will also automatically reconcile the fees that GoCardless issues to you each time you use the service.
To enable this, select ‘Connections’ from the drop-down menu at the top-right of the screen. Select ‘Manage GoCardless’ and use the drop-down menu to choose the GBP bank account that the funds will be paid into.
FreeAgent will automatically create a new ‘GoCardless Account’ bank account in FreeAgent. This is different from normal bank accounts in FreeAgent as it’s solely used to record the details of invoice payments and refunds from GoCardless.
How the GoCardless bank account works
When a customer makes a payment to you through GoCardless, FreeAgent will create a transaction in your ‘GoCardless Account’.
Any GoCardless payments for FreeAgent invoices will be automatically explained against their matching invoice.
If there are payments that come into your GoCardless account for any invoices you’ve sent outside FreeAgent, or any work not recorded in FreeAgent, these transactions will be created in the ‘GoCardless Account’ (the GoCardless bank account in FreeAgent) but will remain unexplained. You can then explain these manually.
FreeAgent then auto-explains the GoCardless fees for all these transactions, both the automatically and manually explained ones, and creates a transfer transaction between the ‘GoCardless Account’ and the bank account you selected when you enabled the auto-reconciliation. This is for the full amount paid into your bank account through GoCardless, and not just the payments for FreeAgent invoices.
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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