Here's how to record a payment from the business to a user, reimbursing expenses that the user has paid for personally, or mileage that he or she has travelled in his or her own car.
How much to pay?
Once you've entered the expenses and mileage into FreeAgent, you can check how much that user is owed by going to Expenses, or My Money > Expenses if your business is a limited company, and choosing that user from the left-hand drop-down menu.
Make sure that you've got an up-to-date view selected, for example 10 Most Recent, and check the running balance. Remember that you won't see the running balance if you choose the "All" view.
Once you know how much to pay the user, do so.
Then we come to recording that payment on FreeAgent.
Type = Money Paid to User
Upload your transactions, or enter them manually. But whichever method you choose, the payment type needs to be Money Paid to User.
Business bank account only
So make sure you're paying from a bank account that's ticked as a business account. You can't pay users from a personal bank account.
To set an account as a business account, go to Banking, and click on it from the left-hand menu.
Then click Edit Details.
Make sure the "This is a Personal Account" box is unticked.
Click Save Account Changes.
Entering the transaction, make sure that you use type Money Paid to User, and choose the correct user from the drop-down list.
Reason = Expense Payment
For the reason for the payment, choose Expense Payment from the drop-down list.
Once you've finished entering the payment, click Create New Entry if you've put this transaction in manually, or Create New Explanation if you've uploaded it. Or click Cancel if you want to start again.
Amount owed falls
Back under Expenses, you can see that the payment to this user is showing on the screen and the running balance amount this user is owed has gone down.
That's the end of this article. You've seen how to record money being paid back to a user for expenses he or she has incurred personally or mileage travelled in his or her own car.