TABLE OF CONTENTS

Corporation Tax

FreeAgent automatically creates entries for corporation tax that aren’t provided to us by FreeAgent. We’re investigating options to improve this but currently corporation tax is unlikely to be converted correctly.


Smart User Payments

If smart user payments are used, FreeAgent, doesn’t provide us with the split between the salary, expense and dividend. This is likely to result in differences in the conversion that we’re not able to resolve.


For more information, please see FreeAgent’s smart user payment blog. 


Flat Rate or non-VAT/tax registered

FreeAgent allows tax transactions to be entered in non-tax registered companies. It also posts the gross transaction value to P&L accounts for purchase transactions with tax under the flat rate scheme.


In both scenarios, while FreeAgent correctly ignores the tax for accounting purposes, the information provided to us from FreeAgent does not. This means we’re unable to accurately convert the journals.


These transactions will be recognised by our system as taxable transactions and the tax will be posted to the tax account. This will cause differences that we’re not able to resolve.


Stock

When selling stock items in FreeAgent, the cost price is calculated by FreeAgent using the FIFO (first-in first-out) principle. This calculated cost is then adjusted for in the balance sheet and Profit and Loss. FreeAgent does not provide us with details of the adjustment. As a result, stock is unlikely to be correct in the destination system.


For more information, please see FreeAgent’s blog on stock valuation.


Foreign Currency

Factors specific to FreeAgent mean that conversions where foreign currency is detected or those containing non-home currency transactions are unlikely to complete accurately.


FreeAgent do not provide any way for us to determine foreign currency related information relating to Bank Transactions and Manual Journals. These transactions are likely to convert to home currency with a 1:1 exchange rate.


We will not investigate or fix any aspect of these conversions, even if seemingly unrelated to foreign currency.


The only options regarding unsuccessful foreign currency conversions from FreeAgent will be to accept them complete with differences, or abandon the conversion. We do not recommend reconverting a second time as this is likely to give the same results.


FreeAgent Trial Balance report

The Trial Balance in FreeAgent doesn’t include previous financial years (unless the report dates are set to include all previous years). This includes the Balance Sheet accounts.


When comparing FreeAgent Balance Sheet accounts to your destination software, set the FreeAgent Trial Balance report to include all dates. When comaring the Profit & Loss report do not select to include previous financial years. 


Data converted via transactional view

In FreeAgent, the same transactions can display with different dates or tax rates in the transactional view compared to the report view.


Data will be converted per the FreeAgent transactional view and not the report view. This “transactional view” data is the only data available to us.


As a result of this, your account balances may be different when comparing between FreeAgent and your destination software.


Capital Asset Handling

FreeAgent uses different accounts for the Capital Asset, additions, disposals, and depreciation. At the end of an accounting year, FreeAgent then ‘rolls up’ these sub-accounts into its parent. It does this “behind the scenes”, without any transaction for us to replicate. This will result in the Capital Asset accounts being correct, but may show different balances. 


This can be checked by summing a single Capital Asset account and sub-accounts in FreeAgent and your destination software. The balances should be the same.  

 

For more information, please see FreeAgent’s blog on handling capital assets


Dividend accounts 

At the end of your financial year FreeAgent transfers the balance on the dividend accounts to the Profit and Loss account. It does this “behind the scenes”, without any transaction for us to replicate. This may result in dividend accounts showing different balances to the source system.


Non-VAT Enabled Source

If you are non-VAT enabled in FreeAgent, you are still able to enter VAT  transactions. If you are non-VAT enabled and have entered VAT on transactions, your destination company will need to be VAT enabled and we will bring across the VAT on the transactions and post them to the VAT account.