Initial money owed

You shouldn't need to add invoices or bills to FreeAgent from before your FreeAgent start date for money owed.

Your FreeAgent start date is the date you choose to start using FreeAgent to keep your books and accounts – this could be the same day that you first signed up to FreeAgent or you could have set this to start using FreeAgent as from an earlier date.

You can find your FreeAgent start date by going to 'Settings', and selecting 'Accounting Dates'.

Unless you're a new business, some of your customers might still owe you money from before your FreeAgent start date. You might also owe money to your suppliers, for bills you haven't yet paid.

How to deal with initial money owed?

Invoices (money owed to you)

Don't recreate any outstanding invoices in FreeAgent, instead:

1. Add up all the money your customers owed you from before you started using FreeAgent – including any VAT
2. Edit your opening balances and add this figure into code 681, Trade Debtors, as a debit entry.

Bills (money you owe to other people)

How to record money you owed to other people when you started using FreeAgent:

1. Add up all the money you owed to your suppliers before you started using FreeAgent – including any VAT
2. Edit your opening balances add this as a credit entry opening balance to code 796, Trade Creditors.

What about when payments are made?

Invoices

When your customers pay you what they owed you as at your FreeAgent start date, explain those receipts with type 'Other Money In' and category 'Receipt from Initial Debtor'.

Bills

When you pay your suppliers what you owed them as at your FreeAgent start date, explain those payments with type 'Other Money Out' and category 'Payment to Initial Creditor'.