Enter bank transactions manually

In this article, you'll see how to enter bank transactions manually.

Why would I do this when I can upload transactions from Online Banking?

You may need to do this if your bank account doesn't yet support online banking, or if you have an account with a bank whose online banking export format FreeAgent can't yet deal with. If the latter case applies, please contact us by e-mailing support@freeagent.com so that we can do our best to add the format to our list.

You'd also enter transactions this way if you're recording petty cash.

And you might also want to enter a manual transaction if you have uncleared cheques coming in or going out at the end of the month.

OK, please tell me how to enter transactions manually.

Go to Banking, and click on the account in question from the list.

Click the More button, and choose Add Transaction.

Transaction Type

The first field to choose is the Type. Choose from the types under Money In and Money Out.

 

I'm going to put in a payment that's not for a bill that I've already entered into FreeAgent, to buy some stationery at Staples. So this would be type Payment.

When and how much?

Put in the date and the amount of the payment.

Category and VAT

You may need to break the amount down if this payment covers more than one category.

Choose the category for the payment. Choose carefully and if you're registered for VAT, make sure that you choose a category in the right area, standard or zero VAT, if you want FreeAgent to automatically calculate the VAT for you.

You may want to put in a new category if none of these suit you.

I'm going to choose Stationery, which is usually standard-rated for VAT.

If you need to put something in a category and manually alter the VAT, usually because you're not entitled to claim some input VAT on a particular transaction, look at the VAT drop-down menu.

The default is that FreeAgent automatically works out the VAT depending on what category you've chosen. But you can set the VAT to any of the UK rates, or, if you need to enter the amount manually, choose Amount, and type the VAT into this box here, which will appear only if you choose Amount from the VAT menu.

Description and image

Put in a description of what the payment was, like this.

This is in case your accountant needs more notes, or your books are inspected by HMRC.

And if you want to, you can upload a scanned image of the receipt, and/or, if this is a payment, re-bill it to a client as part of a project.

Once you've finished entering the transaction, click Create and Add Another to save this transaction and enter another transaction, Create New Entry to save this transaction and stop entering transactions, or Cancel if you don't want to save this transaction.

That's my first transaction.  What about the rest?

If you're recording all your bank transactions manually, you'd then need to work through your bank statement entering each transaction in turn.

When you've finished, check the closing balance in FreeAgent here, against the closing balance on your bank statement, to make sure they are the same.

If they aren't, then you've entered a transaction incorrectly and you'll need to go through your transactions and look for the wrong one, then click on it and edit it so that it is correct.

It is much quicker to enter bank transactions by uploading them from online banking, so we do recommend that you use this method for entering transactions wholesale. If your bank doesn't support online banking, you might want to consider switching to one that does!

The only situation where this would not be possible is if you're dealing with cash.