This article explains how to explain bank transactions using the FreeAgent mobile app. It also explains how to add an attachment to a transaction.
Any changes you make using the FreeAgent mobile app will be reflected in the desktop version of FreeAgent. You'll also need level 6 access or above to FreeAgent in order to use this functionality.
Before you get started
Before you can explain any bank transactions using the FreeAgent mobile app, you will need to enable a bank feed in your FreeAgent account.
Identifying unexplained bank transactions
Open the FreeAgent mobile app on your iOS or Android device and log in using your FreeAgent login details.
Tap the three-lined 'hamburger' icon at the top-left of the FreeAgent mobile app and select 'Banking'.
Next, choose the relevant bank account from the list.
Unexplained bank transactions are displayed in red and explained transactions are displayed in green. Unexplained transactions in personal bank accounts are displayed in grey. Any bank account that you haven't marked as a personal account in FreeAgent is automatically classed as a business bank account.
You can view only the unexplained transactions by tapping the 'Unexplained' tab. The number below the ‘Unexplained’ tab shows the total number of unexplained transactions in that bank account.
You can either explain a single bank transaction or multiple bank transactions in bulk.
Explaining a single bank transaction
Select an unexplained transaction from the ‘All’ or ‘Unexplained’ tabs.
You will then be prompted to enter information about the transaction.
Choosing an explanation type
First, select the appropriate explanation type for the transaction by tapping the ‘Explained as’ field and selecting from the list of options. These options will vary depending on whether you are explaining a ‘Money in’ or ‘Money out’ transaction.
Choosing a category
Next, select the appropriate category for the transaction by tapping the ‘Category’ field and selecting from the list of options.
Choosing a VAT rate
If your business is VAT registered, you will need to select a VAT rate for the transaction. If your business is not VAT registered, you can skip forward to entering a description and adding an attachment.
Selecting a VAT rate (for VAT-registered businesses)
If your business is VAT registered and you choose a VATable category for the transaction (this will be indicated in the list of categories), you will need to choose one of the following options to apply the appropriate amount of VAT to the transaction:
- Tap the ‘VAT’ field and select ‘Automatic’ from the drop-down menu and FreeAgent will automatically apply the appropriate rate of VAT on the transaction for you.
- Tap the ‘VAT’ field and select a specific rate of VAT to apply.
- Tap the ‘VAT’ field, tap ‘Custom VAT amount’ and type the amount of VAT you would like to apply.
Entering a description and adding an attachment
Next, enter a description for the transaction. This can be helpful if you need to refer to the transaction in the future or if your accountant needs more details.
If you have a relevant document or file that you would like to attach to the transaction (e.g. a receipt or bill) tap ‘Add attachment’.
If you’d like to take a photo of the document and attach it to the transaction, select ‘Camera’ from the ‘Upload from…’ menu. Alternatively, select ‘Photo library’ (iOS) or ‘Photo album’ (Android) to attach an existing photo that’s saved to your device.
If you’d like to attach a file that’s saved in the ‘Files’ area of your FreeAgent account, select ‘FreeAgent files’. If you would like to upload a saved file from your device, select ‘Other files’.
Once you’ve selected the relevant file, follow the on-screen instructions to attach it to the transaction.
Linking an outgoing bank transaction to a project
For ‘Money out’ bank transactions, you have the additional option of linking the transaction to a project in FreeAgent and rebilling the transaction to a client. To link the transaction to a project, tap ‘Link to project’ and select a project from the list.
If you don’t want to rebill for the project, select ‘Dont rebill, just link’ from the options provided. If you would like to rebill a client, select the relevant rebilling option from the list provided. Tap ‘Done’ in the top-right corner to save the rebilling option.
Once you’ve added all relevant details to the transaction, select ‘Explain transaction’ to complete the process.
Once you’ve explained the transaction, it will be removed from the ‘Unexplained transactions’ tab and will turn green in the relevant bank account in FreeAgent.
Explaining multiple bank transactions
Select the three dots in the top-right and choose ‘Select transactions to explain’ from the drop-down menu to bring up the option to select multiple transactions.
Tick the checkbox to the left of each bank transaction that you’d like to explain. Please note that you can't explain ‘Money In’ and ‘Money Out’ transactions at the same time. Instead, you'll need to explain one type of transaction first, then the other.
Select ‘Explain’ at the top of the screen.
Select the 'Explained as' field.
Choose the relevant 'Money in' or 'Money out' option depending on the type of bank transactions you're explaining.
Select the relevant category in the 'Category' field if applicable and choose the appropriate rate of VAT in the 'VAT' field.
Once you've entered the relevant information, select 'Explain [X] transactions' to complete the process.
Once you’ve explained the transactions, they will be removed from the ‘Unexplained transactions’ tab and will turn green in the relevant bank account in FreeAgent.
The option to bulk explain transactions works with all bank account types, including PayPal accounts, and is currently available for the following types of transactions:
- 'Money In’ > ‘Sales’
- ‘Money In’ > ‘Refund’
- ‘Money Out’ > ‘Payment’
- ‘Money Out’ > ‘Sales Refund’