Freshbooks vs FreeAgent

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T

Taxed

Free Member
Nov 4, 2016
42
4
  • #1
    Good Morning.

    I'm a freelancer who works through my LTD company (for tax reasons). I'm based in the UK but my clients are overseas and I bill in USD.

    Payments are received in USD via PayPal. PayPal take a fee for each payment I receive.

    Then I withdraw the money into my Natwest UK bank account, with PayPal converting the money from USD into GBP (using their less favourable exchanges rates).

    I probably send about 5-10 invoices a month.

    I'm currently using Freshbooks which I like. However, I keep hearing good things about FreeAgent. My accountant recommends FreeAgent too.

    Should I make the change? My accounting year has just finished so now would be a good time to switch.

    I think FreeAgnet can connect to PayPal and my bank account - is there any benefit to this? Also, does it help with tax forecasting for LTD companies?

    Thanks.
     
    T

    Taxed

    Free Member
    Nov 4, 2016
    42
    4
  • #3
    Bank feeds aren't availabel for UK users apparently. I can't see the button to connect a bank account so I assume it has been disabled.

    I'm happy in the sense that I don't know what I'm missing - if I'm missing anything at all.

    Hopefully someone can shed some light on the main differences between the two.
     
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    T

    Taxed

    Free Member
    Nov 4, 2016
    42
    4
  • #7
    How does FreeAgent deal with payments from clients and PayPal fees and currency exchanges rates?

    If I invoice a client for $100, is there a way to record the PayPal fees I pay when receiving the payment from the client?

    Then, when I withdraw the money from PayPal into my UK bank account, is there a way to record the actual amount I receive in GBP?

    PayPal uses an exchange rate which is lower than the real exchange rate.

    So if I invoice $100 and get paid $100 you might think I receive £80. But as PayPal takes a fee, then uses a weak exchange rate, it might be more like £75.

    Over a year that little difference could add up.

    So to any FeeAgnet users, does FreeAgent have a way to record this?

    Thanks!
     
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    G

    Glenn Martin

    Free Member
    Oct 1, 2015
    177
    45
    North East England
  • #9
    How Much do you pay for Freshbooks? Freeagent is very much a premium product so although very good may be slightly more expensive. I have not used Freshbooks but my clients who use Freeagent do rate it. it has some useful tools built into like future tax laibility and projected dividends which is a big help as often contarctors spend their earnings as if it were net pay and dont provide for tax at the end of the year. It also deals with multi currency as well as any cloud package.

    With regard to how you trade, have you not considered asking your bank to set up a dollar account for you so you could invoice in $1500 and get paid $1500 transferring to £ when you need to without suffering paypal fees on every invoice. you could also click when dollar is stronger against the pound etc.

    You would need to consider the conversion of your date if you were thinking of moving. You may loose some of your history which maybe an issue.
     
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    T

    Taxed

    Free Member
    Nov 4, 2016
    42
    4
  • #12
    Glenn Martin said:
    How Much do you pay for Freshbooks?

    it has some useful tools built into like future tax laibility and projected dividends which is a big help as often contarctors spend their earnings as if it were net pay and dont provide for tax at the end of the year. It also deals with multi currency as well as any cloud package.

    With regard to how you trade, have you not considered asking your bank to set up a dollar account for you so you could invoice in $1500 and get paid $1500 transferring to £ when you need to without suffering paypal fees on every invoice. you could also click when dollar is stronger against the pound etc.

    You would need to consider the conversion of your date if you were thinking of moving. You may loose some of your history which maybe an issue.
    Click to expand...

    Thanks. I pay $20 which is about £15 per month for the basic package.

    The tax prediction sounds good. Would that work if there are two people getting a salary/dividend from the company? What do your clients do when they realise they haven't been putting tax away each month?

    I hadn't thought of setting up a dollar account. I didn't know that was possible. I think my clients like paying through PayPal as its easy for them but will look into this.

    I've just submitted my details to my account for the year so now would be a good time to change, just worried about making a wrong decision and losing my previous data.

    Thanks for your help.
     
    Upvote 0
    G

    Glenn Martin

    Free Member
    Oct 1, 2015
    177
    45
    North East England
  • #13
    @Taxed a good accountants advice should extend beyond Tax and accounts filing.

    I had a client who does triangular sales in that he buys a product from say Turkey and sells it to someone in Germany. After the Brexit vote all his customers switched to only dealing in Euros so he was over paying for purchases then suffering again when he got laid as the banks exploit exchange rates. So we opened up a euro account which saves several hundred pound per transaction.

    Providing for tax you owe is essential and in broad terms it will 20% of your profits. Good advice is to have a swings account attached to your main current account. A good accountant will work with you in year looking forward so you will know what tax position is shaping up like as you go as oppose to receiving your accounts 7/8 months after the year with a few weeks notice of your tax liability
     
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