Create a new expense
Here's how to record your out-of-pocket expenses (your own money that you spend on business expenditure).
Depending on your FreeAgent account type you'll either find Expenses in the main menu or in the My Money menu. You can also quickly start a new expense by choosing New Expense from the Quick Links menu on the Overview screen.
1 Choose a user
Once your in the Expenses section, make sure you have the right user selected, the person who spent this money personally.
Very first expense: no user visible
The very first expense you create on your FreeAgent account doesn't give you the option to choose the user. This expense has to be for yourself.
If you don't have any expenses to record, put in a dummy expense and then next time you record an expense you'll be able to see the users drop-down menu. You can always delete your dummy expense later.
For all expenses you've paid for personally, except for mileage in your own car which is dealt with separately, select Add New Expense.
2 Create a new expense
Payment or Refund
Choose whether this was a payment or a refund. It'll usually be a payment but sometimes you might need to record a refund, for example if the employee was personally paid back for something he or she has previously claimed on expenses, such as a train ticket which was not used because there were engineering works in progress.
Choose a category for the expense. You can also add a new category.
If you're a UK based company registered for VAT, make sure it's in the right area for VAT. For example, if your employee bought some stamps at the post office, make sure that you categorise this as Postage so that no VAT is claimed on it.
Enter the date of the expense.
Choose the currency that you used to pay for the expense. If this is a currency other than your base currency please see our multi-currency expenses article.
Enter the amount of the expense, as on the employee's receipt. Put the figure in inclusive of any VAT. Remember, if you need to override the default Auto VAT setting, you can choose from a set percentage, or choose Amount from the menu if you need to manually enter VAT.
Put a description of what this was for. You might also want to make a note of why the employee incurred it, particularly if it's a tax-sensitive expense such as business entertaining.
Link to project
You can link this expense to a project...
...and optionally re-bill it to that project's customer, at cost or with a mark-up.
If this expense is going to happen again in the future, for the same employee and same amount as before, for example, a mobile phone voucher, use the Recur option to put it in again automatically.
Once you've finished entering the expense, click Create New Expense to save it, Create and Add Another to save this expense and start entering another one, or Cancel to close this screen without saving the expense.
That's it. Job done!
The expense has been added to the list of costs incurred by this user which he or she can expect the business to pay back for.
I've made a mistake entering my expenses
I want my business to pay me back for what I've spent
Please see our guide to recording a payment from the business to a user.
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