We’re changing the way we handle capital assets in FreeAgent.
We've set up more logical nominal codes and created different accounts for additions, disposals, and depreciation during the year and on disposals.
If you look at the list of FreeAgent codes under Journal Entries or in Accounting > Trial Balance > Chart of Accounts CSV, you’ll see the following codes:
If you don’t have any capital assets on your books, then you can stop reading this now.
If you do have capital assets, then you’ll see things working slightly differently.
We’ve changed the numbers of some codes as follows:
These codes will be discontinued, so If you have any figures in codes 611-616 you’ll see them in slightly different places when you next look at your Trial Balance. Other than this, the Balance Sheet will look exactly the same.
We’ve also worked some accounting magic so that anything you post to a code starting with 602 or 604 will be rolled up into its counterpart starting with 601 at the end of the financial year, so that at the start of the new financial year you’ll see last year’s cost brought forward, plus any additions, less any disposals, all in the one code. This is something you’d otherwise need to do yourself, or ask your accountant to do, when your final accounts are prepared.
Similarly, anything you post to the 606 or 607 codes will go automatically into its 605 counterpart at the end of the year. This is to do the same thing with the depreciation.
FreeAgent’s automatic depreciation entries will be posted into the codes that end in “Depreciation in Year”.
When you enter a purchase of a capital asset, you'll be asked how you'd like to categorise it - Computer Equipment, Fixtures and Fittings, Motor Vehicles, or Other. Make sure you choose the correct category so that your asset goes into the right line on the balance sheet.
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