I have a consultancy company which invests spare cash in listed shares. I use FreeAgent but it wants to treat investments as fixed assets subject to depreciation. Is there a good alternative to FreeAgent. I have asked my accountant but he has humbly pleaded ignorance. He despairs of me, because, although I am a lawyer, I like doing my own accounting and tax returns.
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Surely TaxCalc deals with investments in shares. Are you saying that it forces you to include them in tangible assets?
It sounds as though FreeAgent is merely treating it as a Fixed Asset and applying depreciation.
I'm sure this is just a simple of case of changing a setting in FreeAgent and not depreciating this 'asset'.
But why does it matter if everything ends up in the right place in your accounts? Is it because the book keeping system automatically calculates depreciation which you have to reverse?
Are you sure it isn’t? Have you looked at the full list of available balance sheet asset categories?
Can't comment about FreeAgent as have never used it. But surely there are stock or debtors categories which would be simpler for you to use than tangible assets - surely no automatic depreciation there.
This is the type of thing that made me avoid FreeAgent. It tries to be clever by depreciating assets for you and working out the corporation tax. Not giving you an option to override. It made the year end process harder.
I just had a quick look at FreeAgent to see if you missed a simple solution but it's worse than I thought.
You've probably found the same workaround that I would suggest. I imagine Natwest with have a field day trying to develop out these sorts of issues!
Why can't you use 631 Investment additions? This is what I use for my clients.
I usually find a work around in FreeAgent.
If you don't want to book depreciation on a fixed asset then book it as a journal entry as the depreciation is not automated.