How to choose the appropriate type and category when explaining a bank transaction

This article explains how to choose the appropriate type and category when explaining a bank transaction relating to money paid in to or paid out of your business bank account in FreeAgent.

Once a bank transaction has been imported into your FreeAgent account via a bank feed or uploaded from a bank statement, you will need to explain what type of income or cost it is. To do this, you will need to select the appropriate ‘Type’ and ‘Category’ when explaining the bank transaction.

Please note that you’ll need to have level 6 access or above to your FreeAgent account to explain bank transactions.

If you’re unsure which ‘Type’ and ‘Category’ to allocate a bank transaction to, please ask your accountant.

Money paid in to your bank account

Transaction types and categories

First, you’ll need to choose the relevant ‘Type’ from the options below when explaining the bank transaction. Then, you’ll need to select the relevant ‘Category’ from the drop-down list provided (if applicable).

If none of the available categories is suitable for a transaction, you can create a custom accounting category.

Below is a list of all the standard ‘Money in’ transaction types in FreeAgent. Select a link for more details on the transaction type and related accounting categories:

If the money paid in to your bank account doesn’t fit into any of the above options, select the ‘Other Money In’ transaction type. See more details and example scenarios.

Specific scenarios

You may encounter one of the following scenarios where you need to explain money coming into your bank account. Select the relevant link below for more details:

Find out more about how to explain money received into your bank account.

Money paid out of your business bank account

Transaction types and categories

First, you’ll need to choose the relevant ‘Type’ from the options below when explaining the bank transaction. Then, you’ll need to select the relevant ‘Category’ from the drop-down list provided (if applicable).

If none of the available categories is suitable for a transaction, you can create a custom accounting category.

Below is a list of all the standard ‘Money out’ transaction types in FreeAgent. Select a link for more details on the transaction type and related accounting categories:

If the money paid out of your bank account doesn’t fit into any of the above options, select the ‘Other Money Out’ transaction type. See more details and example scenarios.

Specific scenarios

You may encounter one of the following scenarios where you need to explain money going out of your bank account. Select the relevant link below for more details:

Find out more about how to explain money paid out of your bank account.

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