Entering money in and out of the business (sole trader or partner)

How to enter money going into and out of the business from the owner of a UK-based non-limited company business, to a sole trader, or a partner.

Limited company directors, employees and non-UK businesses have slightly different options.

Money taken out by the business owner

With a personal account in FreeAgent

If you're transferring this money to a personal account that you already have set up in FreeAgent, then you would explain the payment as a Transfer to Other Account, and choose the personal account from the Account drop-down menu.

transfer_to_personal

Without a personal account in FreeAgent

If you don't have your personal account set up in FreeAgent, then you would explain the payment as Money Paid to User. Choose yourself from the list of users and put the explanation as Drawings.

money_paid_to_user

You also have to use this for any payments that you can't claim tax relief on, such as private travel.

Money put into the business by the owner

With a personal account in FreeAgent

If that's a transfer from a personal account that you've already set up in FreeAgent, you would explain this receipt as a Transfer From Another Account, and choose the personal account from the Account drop-down menu.

transfer_from_personal

Without a personal account in FreeAgent

If you don't have your personal account set up in FreeAgent, then you would explain the receipt as Money Received from User. Choose yourself from the list of users. There's only one possible explanation here, Capital Introduced.

capital_from_user

Finish explaining and saving the transaction as normal.

I can't see Money Paid to User or Money Received from User.

This might be why.

Where can I see a breakdown of my capital introduced and drawings?

If you want to see a list of all the transactions that make up your capital introduced and drawings, go to Accounting > Reports > Show Transactions and look at the transactions in code 901, Capital Account.

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