Step by Step Guide

Step 1: Start off by Logging into your FreeAgent Account.

Once logged in you will be presented with the home screen which will look as follows:

Step 2: On the main menu click on the ‘Banking’ Tab and you will be presented with the following sub-menu.

Step 3: From the sub-menu select ‘Bank Accounts’ and you will be presented with the business bank account(s) – as shown below.

Step 4: Click on the appropriate bank account for which you wish to explain the bank transaction/s.

Step 5: From the right side of the screen select the month for which transaction you wish to explain. 

Step 6: In our example we have selected the month of July 24.

You will be presented with the following screen, the transactions in red have yet to be allocated and categorised.

Step 7: Click on the transaction that you wish to allocate; in our example below, we have clicked on the transaction for £43.15.

Step 8: Once clicked, the transaction details for £43.15 will expand and appear as follows.

Step 9: Click on the drop-down menu next to ‘Type’ and the following options will appear.

Step 10: Select the relevant option from the sub menu. 

For this client ‘Payment’ is the option to select. Once selected the screen will appear as follows.

Step 11: Next click on the drop-down menu for ‘category’ and you will be presented with the following options. Select the relevant option from the sub menu. 

For this client ‘Subscription’ is the correct option.

Step 12: Once selected the screen will appear as follows:

Step 13: Now save all changes by clicking on the green box ‘Explain transaction’. As show below. Alternatively, you can click cancel if you do not wish to save the changes.

Tips for Accurate Explanation:

• Categorize Correctly: Ensure that you select the correct ‘Type’ and ‘Category’. Consistence is the key. The option selected from the drop-down menu will be specific to each individual client.
• Regular Bookkeeping: Regularly explain bank transactions is the key to keeping your accounts up to date.
• Attach Receipts: By selecting the More Option a user can upload a copy of the expense invoice. This can be for future reference or in case of an audit should HMRC ask for receipts.
•  Add More Detail: You add more detail to the expense than what is being imported from the bank by selecting the ‘More options’ option.