Accounting essentials in FreeAgent for accountants
This article explains how to manage your client’s accounting categories and make journal adjustments. It also explains how to manage account locks in your client’s account and how FreeAgent handles the year end process for your clients.
How to manage your client’s accounting categories
You might find the following articles useful for managing accounting categories in your client’s account:
- How to view or edit an accounting category
- How to delete an accounting category
- How the director’s loan account works in FreeAgent
- How to view the tax reporting type of an accounting category
- Tax and accounting effects of accounting categories for sole traders, partnerships and LLPs
- Tax and accounting effects of accounting categories for limited companies
How to create journal entries
You might find the following articles useful for making adjustments using journal entries in your client’s account:
- How to record prepayments
- How to record accruals
- How to accrue or defer income
- How to edit or delete journal entries
- How to copy or reverse journal entries
- How to record payroll by creating journal entries
- How to adjust boxes 1 and 4 of your VAT return
- How to adjust your Corporation Tax liability figures
How to add or remove an account lock in your client’s account
Your client’s accounts will be locked automatically by FreeAgent as a result of certain events such as the filing of a Self Assessment tax return if they’re a sole trader, or approving and signing their end of year accounts if they’re a limited company director.
You can also add an account lock manually to prevent your client from editing any of the data that makes up their accounts, up to a particular date.
If you need to, you can then remove a lock on your client’s accounts.
How FreeAgent handles the year end process
At the end of an accounting year, your client’s profit and loss accounts are ‘cleared down’ to retained profits (code 968 in FreeAgent) so you and your client can measure profit and loss for the following year. FreeAgent clears the accounts down automatically for your client.
You might find the following articles useful for explaining the steps that FreeAgent takes for the year end process for each UK account type: