View or edit an accounting category
This article explains how to view the accounting categories, which form part of the chart of accounts, you have set up in FreeAgent and how to edit them.
To remove an accounting category, read how to delete an accounting category.
When you add an invoice item, out-of-pocket expense, bill, journal entry or explain a bank transaction, you need to allocate these to a category to explain the type of income or cost that they are. For example, pens and pencils for use in the office would usually be allocated to the ‘Stationery’ category.
Please note:
- You’ll need full (level 8) access to your FreeAgent account. See below for details on locked categories.
- If you update the name of an accounting category in FreeAgent and view the Show Transactions report, or the Full Report of a VAT return, over a date range prior to the category name being updated, the report will show the category's original name. This is to preserve the accounting record as it was at the time it was entered.
- We're not authorised by HMRC to provide accounting or tax advice. Therefore, FreeAgent’s support team are not allowed to advise you which Reporting Name should be selected for a custom category created or whether an expense is ‘Allowable for Tax’. If you're unsure, please speak to your accountant or to HMRC.
Viewing your categories
Select 'Settings' from the drop-down menu at the top right-hand corner of the screen and then select 'Accounting Categories'.
This will take you to the Accounting Categories page. Select the relevant tab at the top of the page to view your income, admin expenses, cost of sales, assets, liabilities and equity categories. These form part of the chart of accounts.
You can view the nominal code, name, tax reporting type and VAT rate of each category within the selected tab.
Custom categories that have been created will have a silhouette next to the description.
Editing a category
To edit the name or VAT rate of a category, select the ‘Edit’ button next to that category.
Make the relevant changes and select ‘Save Changes’ to complete the process.
Locked categories
Please note that code ‘001-Sales’ is a pre-set FreeAgent category that can’t be edited or deleted. It’s also not possible to edit or delete any pre-set ‘Capital Asset’, ‘Current Asset’, ‘Liability’ or ‘Equity’ categories as indicated by the padlock icon to the right of each category.
The following pre-set ‘Admin Expense’ categories can be edited, but changes can only be made to the ‘Auto VAT Rate’ and these categories can’t be deleted:
- ‘249 Mileage’
- ‘283 Motor Expenses’
- ‘363 Bank/Finance Charges’
- ‘390 Realized Currency Exchange Gain/Loss’
- ‘391 Unrealized Currency Exchange Gain/Loss’