FreeAgent Accounting Software Review for Small Business

Are you a small business owner, freelancer, or landlord looking for the perfect accounting software to manage your finances? Look no further than FreeAgent, a comprehensive, user-friendly, cost-effective solution designed to meet your needs.

Say goodbye to tedious manual data entry and hello to streamlined bookkeeping processes that save you time and effort. In this blog post, we’ll explore the ins and outs of FreeAgent software, its features and benefits, and how to make the most of this powerful accounting tool.

This FreeAgent accounting software review is written by Angela Boxwell, who obtained FreeAgent Accreditation for 2023 and uses the software as part of the bookkeeping practice.

Key Takeaways

• FreeAgent Accounting Software provides an intuitive interface and powerful features to simplify financial management.
• It offers a variety of core features such as invoicing, expense tracking, tax filing support and more.
• Expert tips are provided for efficient bookkeeping and planning with FreeAgent’s budgeting, forecasting & reporting tools.
• Lots of tutorials are available online
• FreeAgent is free for certain business current account customers.

Exploring FreeAgent Accounting Software

Imagine a one-stop solution for all your bookkeeping and accounting tasks. FreeAgent is a multi-award-winning, cloud-based accounting software tailored for small business owners, freelancers, and landlords.

With its intuitive interface and powerful features, FreeAgent makes handling your business finances a breeze. But don’t just take our word for it; the general user experience with FreeAgent has been overwhelmingly positive, especially when efficiently managing bookkeeping and accounting tasks.

The subsequent sections will highlight what sets FreeAgent apart, covering everything from its core features and benefits to its support for digital tax compliance. Let’s reveal the full potential of FreeAgent for your business finances!

What is FreeAgent?

FreeAgent is a cloud-based accounting solution for small businesses, freelancers, and landlords. It provides various features, including invoicing, expense tracking, time tracking, cash forecasting and tax compliance, all while securely handling your business information. FreeAgent is custom-made to satisfy the unique requirements of service and project-based sectors. It also has a stock system for product-based companies.

The advantages of using FreeAgent are numerous. For instance, it streamlines many basic bookkeeping tasks, allowing small business owners to focus on the business. It also offers mobile apps for both Apple and Android devices, which help monitor bank balances and future tax deadlines.

With FreeAgent, you’ll have greater confidence in your finances and minimise the need for multiple software solutions.

FreeAgent Reviews

If you are not sure if FreeAgent software is for you, check out the reviews on Trustpilot; it scores 4.6* out of 5 with nearly 3000 reviews. Some reviews show the excellent customer support received and the software’s ease of use.

Core Features of FreeAgent Online Accounting Software

FreeAgent offers a comprehensive set of features that simplify your financial management. Some of its primary features include:

• Customer estimates
• Invoicing – including time tracking
• Expense management
• Bank feeds
• Tax filing
• Mileage tracking

By integrating with popular eCommerce and payment solutions like PayPal, Amazon, GoCardless, Shopify, and Stripe, FreeAgent makes managing many basic bookkeeping tasks easy.

Aside from these core features, FreeAgent also offers insights on:

• Cash flow
• Profit and loss
• Invoices
• Business bank accounts
• Project performance

These features aid decision-making and allow you to understand your business’s financial health. With FreeAgent, you can make smarter business decisions and thrive in a competitive market.

How FreeAgent Supports Tax Digital Compliance

In our current digital era, maintaining tax compliance has become increasingly significant. FreeAgent supports Making Tax Digital (MTD) compliance, allowing users to file VAT returns and Self-assessment tax returns directly to HMRC. MTD mandates that VAT-registered businesses maintain digital records and utilise MTD-compatible software for submitting VAT returns.

HMRC has authorised FreeAgent for Making Tax Digital (MTD) for income tax self-assessment. You can already complete your self-assessment tax return within the software. It has also enabled over 600,000 MTD VAT returns. Using FreeAgent, you can ensure that your business stays compliant with tax regulations and try to avoid any financial repercussions from HMRC.

The Benefits of Integrating FreeAgent With Your Business Bank Account

Integrating FreeAgent with your business bank account offers many advantages, including real-time updates and improved financial insights.

The subsequent sections will examine how integrating your business bank accounts can boost your business’s performance and streamline your financial management procedures.

Real-Time Updates from Your Bank Account

One of the most significant benefits of integrating FreeAgent with your business bank account is receiving real-time updates on your financial transactions. FreeAgent employs Open Banking technology, allowing you to securely link your bank account to the software and access your transaction data in real-time. This ensures that your financial records are always up-to-date and accurate.

Real-time bank account updates in FreeAgent increase accuracy and automate time-saving processes, ensuring your accounts are constantly updated and well-maintained.

Importing bank transactions from previous periods into FreeAgent has never been easier; you can import up to two years of transactions and automatically import new transactions. This eliminates manual data entry and keeps your financial information current.

Enhanced Insight into Your Business’s Performance

FreeAgent’s financial reporting feature and bank integration offer enhanced insight into your business’s performance, allowing you to make informed decisions. By generating custom financial reports such as:

• Profit and Loss
• Balance Sheet
• Cash Forecasting
• Trial Balance
• Audit Trail
• Bank ReconciliatBy managing your personal and financial data effectively, you

You can better understand your business’s financial health and make data-driven decisions to ensure its success.

Navigating FreeAgent’s Mobile App

The FreeAgent mobile app is a highly beneficial tool for managing your finances while on the move. Featuring invoicing, expense tracking, bank transactions and tax deadline monitoring, this app allows you to take control of your business finances from anywhere, at any time.

The following sections will examine the convenience and efficiency provided by the FreeAgent mobile app.

On-the-go invoicing and Expense Management

The FreeAgent mobile app offers a range of features to help you quickly manage your invoices and expenses, even when you’re away from your desk. Some of the features include:

• Creating, viewing, and sending estimates and invoices directly from your mobile device
• Using customisable themes, logos, and payment links for your invoices
• Effortlessly editing existing invoices to stay on top of your invoicing needs

With the FreeAgent mobile app, you can easily manage your invoices and expenses on the go.

In addition to invoicing, the mobile app provides an efficient way to handle your expenses. Here are some features of the app:

• Capture smartphone photos of expense and mileage claim receipts and feed them directly into the FreeAgent accounting system
• Quickly view and record outstanding invoices and expenses
• Track time and expenses for projects
• Track mileage
• Categorise expenses

All of these features can be accessed from the convenience of your mobile device.

Keeping up to date on Banking Admin

FreeAgent accounting enables secure and instant access to your business finances. You can stay on top of banking admin, such as reconciling bank statements, transaction categorisation, setting up rules for automatic payments, creating automated reports and forecasting cash flow.

You can also make quick decisions about the future of your business with a real-time view of how much money is coming in and out of the company. Plus, you have peace of mind knowing that all transactions are recorded accurately and securely in compliance with government regulations.

Staying Alert on Financial Commitments

The FreeAgent mobile app is designed to help you stay informed about your financial commitments, including upcoming tax deadlines. The Tax Timeline feature enables users to:

• Monitor critical tax-related tasks and deadlines from their mobile devices
• Help ensure you never miss an important deadline
• Manage their finances more effectively
• Avoid late payments or penalties

This level of visibility allows you to stay on top of your financial obligations and make informed decisions.

FreeAgent Accounting Software Pricing

Grasping the pricing of FreeAgent accounting software is essential when considering it as a potential solution for your business.

FreeAgent for Free

FreeAgent is free to those who maintain a business current account with NatWest, Royal Bank of Scotland, or Ulster Bank. Additionally, it’s free for those who conduct at least one transaction per month through a Mettle bank account. Optional add-ons may come with additional charges.

Using the free plan allows access to all the features of FreeAgent, including time tracking, invoicing, expense and mileage tracking, project management capabilities, bank accounts, and accounting software integration.

FreeAgent Software Pricing Plans

FreeAgent accounting offers pricing plans based on your business type, meaning each plan is tailored to the taxation needs. Prices start at £10 per month for a landlord, £19 for sole traders and range up to £29 per month for larger companies. Annual billing can also be opted for, giving 12 months for the price of 10.

Understanding Optional Add-Ons and Their Costs

FreeAgent offers a variety of optional add-ons, including:

Payroll – This is FREE integrated software. Payroll includes submitting real-time information to HMRC, generating payslips and P60s and staying compliant with HMRC.

Smart Capture – The ability to capture expenses and receipts and extract the information. Once the data is extracted, it can be automatically matched to a bank transaction. Smart capture is free for up to 10 monthly transactions or £5 per month (cheaper than some rivals).

Amazon integration – Handles sales, refunds, and fees related to your Amazon reseller account – £6 per month.

By understanding the costs of these add-ons, you can make a more informed decision about the best FreeAgent package for your business.

Making the Switch to FreeAgent

If you’re contemplating a switch to FreeAgent, it’s important to comprehend how to make a smooth and efficient transition. Whether you’re starting fresh or transferring existing data, the following information will provide tips for switching to FreeAgent, ensuring you get the most out of this powerful accounting software.

Starting Fresh with FreeAgent

Starting fresh with FreeAgent is an excellent option for new users or businesses who want to take advantage of its comprehensive features without transferring existing data. When registering for FreeAgent for the initial time, new users can anticipate receiving a 30-day free trial. Moreover, FreeAgent may offer introductory discounts for new users, making it an even more attractive choice for those new to the software.

To get started with FreeAgent, tutorials and resources are available to help beginners familiarise themselves with the platform. You can find video tutorials on YouTube and visit the NatWest website for further information and resources. By leveraging these resources, you can quickly learn the ins and outs of FreeAgent and begin managing your finances with ease.

Transferring Existing Data

For those looking to transfer their existing financial data to FreeAgent, rest assured that the process is seamless and efficient. FreeAgent is capable of transferring various types of financial data, such as:

• Bank transactions
• Invoices
• Expenses
• Payroll information
• Contacts

Steps to transfer to FreeAgent accounting

The following is a brief guide on the steps to transfer from your existing accounting platform.

• Choose a suitable date to transfer. A year-end is the easiest
• Run reports from the previous software
• Open a FreeAgent account, set it up for your business type, and add the business details
• Set up the accounting dates
• Import your opening balances
• Set up the bank feed for the business current account and import the bank transactions
• Import contacts, expenses, mileage, sales invoices and bills
• Once everything is set up, ensure the opening balances match the previous software reports

By following the appropriate steps and guidelines, you can confidently transition your existing financial data to FreeAgent. Once your data is transferred, you can start using the powerful features of FreeAgent to manage your finances more effectively and efficiently.

FreeAgent for Different Business Types

FreeAgent caters to various business types, including sole traders, landlords, and small businesses. The subsequent sections will examine how these businesses can utilise FreeAgent’s comprehensive features and capabilities.

Sole Traders

As a sole trader, FreeAgent provides various benefits, such as streamlined accounting, automation, and a user-friendly interface to manage invoices, expenses, and projects easily. More importantly, FreeAgent simplifies tax compliance by automatically calculating your Self-assessment liability and generating some figures for your tax return.

FreeAgent offers the following features:

• Real-time tax liability tracking, allowing you to observe your income tax and NI liabilities as they increase over time and avoid last-minute scrambling
• Integration with your business bank account, providing a comprehensive view of your financial situation
• Ensuring you have the necessary funds to cover your tax bill or pursue unpaid invoices if needed

Landlords

Landlords can significantly benefit from using FreeAgent, thanks to its specialised solution, ‘FreeAgent for Landlords’. This feature is designed to help landlords keep digital records, file tax submissions, and manage their finances more efficiently.

With FreeAgent, landlords can track rental income, manage expenses, generate invoices, and monitor their overall financial health, providing them with the necessary features to streamline their accounting processes and stay compliant with tax regulations.

FreeAgent’s auto-population of the UK Property (SA105) form simplifies completing the form by minimising manual data entry and ensuring accuracy in your rental income and other receipts from UK land or property. This saves time and reduces the likelihood of errors in your tax submissions.

Small Business

Small businesses can use FreeAgent’s comprehensive features for efficient bookkeeping and financial management. With its robust double-entry accounting system, adaptable reports, and automation features, FreeAgent enables small businesses to stay on top of their finances and make informed decisions for growth.

By incorporating FreeAgent into their financial management workflows, small businesses can create a cohesive and integrated system that simplifies their accounting processes and improves their financial health.

Expert Tips for Maximising FreeAgent’s Potential

To fully utilise FreeAgent, it’s crucial to employ expert tips and best practices. The upcoming sections will share insights on efficient bookkeeping practices and strategies for future planning with FreeAgent.

By implementing these tips, you’ll be able to manage your finances more effectively and ensure the success of your business.

Best Practices for Efficient Bookkeeping

FreeAgent software can be a powerful tool for efficient bookkeeping, but it’s essential to implement best practices to maximise its potential. Some effective bookkeeping practices using FreeAgent may include:

• Keeping personal and financial data separate
• Automating processes – Using bank feeds and smart capture for bills
• Sending automated statements and reminders
• Keep track of mileage and time to pass to customers
• Staying up to date with bookkeeping and accounting tasks allows you to see real-time financial data.

FreeAgent’s online accounting software can facilitate time-saving and automation of bookkeeping tasks. By employing these best practices, you can ensure efficient bookkeeping with FreeAgent and keep your financial records accurate and up-to-date.

Strategies for Planning with FreeAgent Software

Planning is critical to the success of any business, and FreeAgent offers many features to aid this process. By leveraging FreeAgent’s features for long-term planning, such as:

• Budgeting and forecasting
• Cash flow management
• Tax planning
• Financial reporting

You can make informed decisions and set achievable goals by having accurate business details for your company.

Summary

In conclusion, FreeAgent software is a powerful, user-friendly, cost-effective accounting software solution for small businesses, freelancers, and landlords. It is free of charge for certain business current account customers, making it an excellent choice.

With its comprehensive features, including invoicing, expense tracking, bank feeds, and tax filing support, FreeAgent simplifies financial management and helps businesses comply with tax regulations. Whether you’re starting fresh or transferring existing data, FreeAgent is a valuable tool for managing your finances and ensuring the success of your business. Don’t miss the opportunity to harness the full potential of FreeAgent and elevate your financial management to new heights.

Frequently Asked Questions

What is FreeAgent used for?

FreeAgent is an award-winning accounting software that over 150,000 small businesses and landlords use to monitor cash flow, send invoices, and record expenses. It simplifies the admin associated with small business clients and provides robust features for accountants and bookkeepers.

Is FreeAgent easy to use?

FreeAgent is an easy-to-use accounting software for small businesses, landlords, and bookkeepers. Getting started requires basic business details and, if applicable, VAT registration information. Transactions from bank accounts can be seen instantly via online banking. Overall, FreeAgent is easy to use.

Alternatives to FreeAgent

Many alternatives to FreeAgent include QuickBooks, Xero and Zoho Books. Check out each one to find the best solution for your business. See our list of the best accounting software for self-employed.

What type of businesses can benefit from using FreeAgent?

Small businesses, contractors, freelancers, and landlords in the service and project-based sectors can all benefit from using FreeAgent.

How does FreeAgent support Making Tax Digital compliance?

FreeAgent makes it easy to stay compliant with Making Tax Digital by allowing users to quickly and easily file VAT returns and Self-assessment tax returns directly to HMRC.