If you’re a company that converted from FreeAgent, the automatically posted journals relating to corporation tax won’t have been converted. The only one of these journals we do convert is where the year end has completed, but the corporation tax payment due date is in the future.
We recommend entering a manual journal in Sage for each year’s corporation tax posting in FreeAgent relating to the converison period. QuickBooks Online’s opening balance journal may also need amending for any opening balance on the Corporation Tax Liability account. The Trial Balances should then agree.
Access the Corporation Tax page in FreeAgent to review the calculations of each year’s corporation tax.
Review the “liability” figure for any historical year with a payment due date in the past. The liability for each of these years should be entered in Sage as a journal. The “Balance Owed” at the last year end before the start date of your conversion will need entering in Sage’s opening balances. This will be covered later on.
Before creating the journals in Sage, check that both a Corporation tax liability and a Corporation tax expense account exist in the Sage chart of accounts. If not create them as necessary.
The example to the right shows how you could create the Corporation tax expense account although customise this as you require.
Once you have the necessary accounts, add the journal to Sage. Choose the Create + button and then select Journal.
The journal date in Sage should be the same as the “Dated on” date from FreeAgent. The liability amount is posted to both the Corporation tax liability and Corporation tax expense accounts in Sage.
Enter a journal in Sage corresponding to the corporation tax liability of each historical year in FreeAgent where the “Payment due” date is in the past. If there’s multiple journals to enter in Sage, you may find it useful to copy one journal and amend the date and amounts as necessary.
Next, add a new journal in Sage or amend the Sage opening balance journal to include the opening Corporation Tax Liability balance. This balance can be found in the FreeAgent Corporation Tax report. If your conversion was for the period 01/01/2019 – 31/12/2024 the “Balance Owed” at 31/12/2018 would be the correct figure.