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All business owners should be made aware of FreeAgent. FreeAgent is an accounting tool to help track and measure your business’s performance. As a FreeAgent platinum partner we wanted to break down the different reports and functionality available using this tool.
We understand that you’re already multitasking with areas of your business but with FreeAgent you can keep tabs of key numbers all in one place.
Within FreeAgent you can generate reports to provide you with insights to your business’s performance and support for making better business decisions.
FreeAgent allows you to monitor income and expenses
Within the profit and loss report (aka a 'profit and loss account', 'P&L account' or just 'P&L'), you’ll be able to see a summary of the history of your business’s trading. The report shows all the business’s income from sales and other forms of revenue, i.e. bank interest.
The profit and loss report in FreeAgent provides plenty of detail as well as an overview screen to allow a quick way to check your business’s income and expenses.
Keep your finance in check with the balance sheet report
The balance sheet report paints a full picture of your company’s finances. It’ll show everything that your business owns, divided into current and fixed assets. The report will also show everything that is owed including current and long-term liabilities.
There are a lot of figures on this report, so it can appear to be overwhelming but it’s very simple, so long as you enter all the correct data throughout the year.
FreeAgent will handle all the double entry bookkeeping for you, meaning your balance sheet should always be equal and balanced.
A balance sheet report is great to monitor your business’s financial health and can be used to identify opportunities as well as potential problems.
FreeAgent helps you stay on top of your outstanding invoices
FreeAgent has a report cryptically named Aged Debtors report. It’s pretty straightforward and allows you to keep track of outstanding invoices and identify late payees.
The report itself keeps a running list of all your customers, organised by invoice, who haven’t paid you yet. It also shows how much they owe ad how long they have been in debt to you.
FreeAgent has a great automatic functionality that allows you to see up emails that remind your customers to pay the invoice when it's due and when it’s overdue.
Keep tabs on your best and worst customers with the sales report
The customer sales report looks at the lifetime value of the customer. In other words, how much income you’ve received from your customers over time.
You can view this report with as much granularity as you’d like, along with filtering options for easier viewing.
This report along side the aged debtors report can highlight customers who pay on time and are profitable - and late-payees who you should avoid!
Spending categories report - It’s in the name.
Finally, FreeAgent allows you to keep track of your business outgoings with the spending categories report.
This report breaks down where you’re spending your money on categorised bills, expenses, and bank transactions. By filtering you’ll get a better understanding on how much money is going out of the business and what you’re spending it on. This can also help guide smart business decisions, make adjustments and reduce unnecessary costs.
Not using FreeAgent yet? Find out why we use FreeAgent as part of our award-winning business accounting services here at Acumenica.
