12 things you must do when setting up FreeAgent

FreeAgent is an online money management and accounting tool that’s been designed specifically for small businesses. It’s powerful and easy to use, making it both easy to set up and to run. And as it covers everything from invoices and expenses through to payroll and Self Assessment tax, it’s perfect for coaches, agencies, consultants and freelancers alike.  

So if you’re looking to use it in your business, here are 12 things you must do, when setting up FreeAgent, to ensure you get the most out of its functionality.

[Disclosure: This blog contains affiliate links, meaning at no additional cost to you, I will earn a commission if you click through and make a purchase.]

#1 Enter your business details

Make sure you enter what type of business you run. You have the option of Sole Trader, Partnership, Limited Company and Limited Liability Partnership. But choose carefully, as you cannot change this later.

#2 Setting up FreeAgent account basics

This includes when you started your business, as well as your accounting year-end and whether you’re registered for VAT. There’s also an option to state whether you’ve applied for registration.)

#3 Set up your bank account

Connect your bank account to comply with MTD. When you’re setting up your bank account you will also need to enter your opening balance.

#4 Import supplier and client details

Your next step, when setting up FreeAgent, is to import any clients and suppliers you already have. 

#5 Choose your invoice sequence

You can set up invoices using three types of invoice sequencing:

  • global invoicing sequencing – where the invoice numbers go up sequentially, starting at the number you choose.
  • contact level sequencing – where your invoices keep a consistent contact reference prefix at the start of each invoice.
  • Project level sequencing – where invoices use a prefix that relates to a specific project.

#6 Upload your Logo and customize your invoice and email templates

You’ll want your logo to appear on every invoice, so make sure you upload yours. Whilst you’re in the settings, take a look at the email templates and tweak the wording to resonate with your terminology and preferences.

#7 Create a price/stock list when initially setting up FreeAgent

You can add a new stock item and designate the right price and quality, to that item. Make sure you set up all of your products and services in here, to make it easier when you’re creating invoices and estimates.

#8 Check accounting categories and make additions/changes as necessary

Categories explain the type of income or cost an item is, such as product sales, stationery, petrol etc.

#9 Set up payroll

You can set up your monthly payroll so you can report PAYE information to HMRC in real-time. 

#10 Give your accountant access

When you’re initially setting up FreeAgent, make sure you set up access for your accountant, if you have one!

#11 Keep the account safe with 2FA

Setting up 2-Step Verification will add another level of security to your account. You can use an authentication app on your phone to generate a new random verification code that needs to be entered, to gain access to your FreeAgent account.

#12 Setting up FreeAgent integrations

Finally, set up any integration connections you need, such as Stripe, GoCardless and HMRC. You’ll find a list of their integration partners,

FreeAgent is powerful and easy to use and is perfect for small businesses. If you’d like to explore the features within this online money management and accounting tool, click here to sign up for a free trial. And if you’d like help with setting up FreeAgent, or simply want help with any financial administration, you can check out what services I offer, here.



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