Why FreeAgent is the perfect online book-keeping system for freelancers and contractors
If you’re a freelancer or contractor operating through a limited company it’s really important that you have a decent system for keeping on top of your company finances including your invoicing, expenses and tax positions.
Over the last few years quite a few ‘cloud’ based book-keeping systems have come on to the market including Xero, Kashflow, Sage One, Quickbooks and our favourite, FreeAgent.
All of these systems have their places – for example if you are running a small growing business or startup then the powerful reporting functionality of Xero is worth considering (see our article: FreeAgent vs Xero – but in our view FreeAgent is the perfect system for freelancers and contractors as it is easy to use but also has all the key features needed.
FreeAgent is an Edinburgh based company which started back in 2007 and importantly it has been designed by non-accountants which means it has a really clean and simple user interface.
As accredited FreeAgent accountants we have outlined below a few reasons why we love this system:
- Online – as long as you have an internet connection you can access your FreeAgent wherever you are, whether at home on your mac or out and about on a tablet. This also means your accountant has access to the same data you have so they can deal with any queries you have and access your year end data when needed.
- Invoicing – it’s easy to raise your invoices through FreeAgent, you can make them look great by using a template and adding your logo and you can email the invoice to your client directly through the system (or download a PDF if you prefer). If you’re VAT registered it will take care of this for you.
- Bank – you can either set up a bank feed where you bank transactions will come into the system automatically, or you can easily import the data. Then it’s a simple task to explain the bank entries – for example if it is for travel expenses or money being received from a client.
- Corporation tax – it’s important to be on top of your corporation tax position when you’re trading as a company as this will affect how much money you can take out as dividends, FreeAgent is one of the few systems that automatically estimates your corporation tax in real time so you should not get any nasty surprises.
- Expenses – if you pay for some of your business costs personally it’s simple to add out of pocket expenses on to the system or to claim mileage for your business journeys.
- Reporting – you can pull up many reports including monthly profit (or loss!), trade debtors (clients owing you money), balance sheet and dividends schedules.
If you are in two minds about then we would suggest you take advantage of their 30 day free trial so you can try it out for yourself.
Article written by John Falcon, JF Financial. Accountants for Freelancers, Contractors and Small Businesses