FreeAgent - Any Alternatives? Still Need an Accountant?
FreeAgent - Any Alternatives? Still Need an Accountant?
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Discussion

rustyuk

Original Poster:

4,724 posts

241 months

Saturday 4th April 2020
quotequote all
Currently using FreeAgent to run my PSC (Limited Company one Employee / Director) in conjunction with an accountant.

It seems FreeAgent have now stopped automatic imports from any financial service that has not fully implemented OpenBanking. Rather than phasing this out they are hiding behind some European Directive stating they can no longer use the screen scrapping technology.

This includes lots of large banks and credit card companies, including the two I use CaterAllen and American Express. For me the only advantage of using FreeAgent was the auto import functionality.

So my first question is, are there any alternatives to FreeAgent that will still import using non Open Banking tech?

My accountant suggested that I move to FreeAgent in order to meet the new Making Tax Digital requirements however, from what I can see FreeAgent now does their job in full. It completes all my returns with the calculations - everything.

My business is very simple, it's just me invoicing and then a few expenses and a basic salary.

So does anyone run their PSC themselves using say QuickBooks or some alternative?


Eric Mc

125,744 posts

295 months

Saturday 4th April 2020
quotequote all
Modern software is wonderful.

It dispenses with the need to use professionals.

It never goes wrong - it's always right and it always picks up when the person who is doing the posting to the system is going to make an error.

It can deal with HMRC enquiries and will pay all your fines for you when you miss deadlines or pay incorrect taxes.

The software companies are always at the end of a phone with fully qualified individuals there to help and guide you make decisions about your business and be there for you in a rainy day./

Who needs accountants.

85Carrera

3,503 posts

267 months

Saturday 4th April 2020
quotequote all
Eric Mc said:
Modern software is wonderful.

It dispenses with the need to use professionals.

It never goes wrong - it's always right and it always picks up when the person who is doing the posting to the system is going to make an error.

It can deal with HMRC enquiries and will pay all your fines for you when you miss deadlines or pay incorrect taxes.

The software companies are always at the end of a phone with fully qualified individuals there to help and guide you make decisions about your business and be there for you in a rainy day./

Who needs accountants.
Bit touchy Eric, he says he uses it in conjunction with an accountant.

OP - QuickBooks is very good. Was recommended to me by my accountant and makes it very easy for them to do VAT returns etc as they can log on and all the info is there.

deggles

723 posts

232 months

Saturday 4th April 2020
quotequote all
rustyuk said:
It seems FreeAgent have now stopped automatic imports from any financial service that has not fully implemented OpenBanking. Rather than phasing this out they are hiding behind some European Directive stating they can no longer use the screen scrapping technology.
They’re not 'hiding behind' anything, the Payment Services Directive (PSD2) prohibits ‘credential sharing’ for online banking integrations and mandates better security via Open Bankng. To be honest, sharing your passwords to third party services was never a good idea, it was an insecure bodge. The legislation should’ve come into force last year but was delayed until March to allow some banks to get their act together, alas some still haven’t. I suggest you harass your bank(s) to get with the program, it’s not FreeAgent’s problem and no other provider can (legally) continue to use the previous style banking integrations.

In the short term, you should be able to manually download statements from your bank and upload them to FreeAgent or your chosen software, but appreciate this is far from ideal.

rustyuk

Original Poster:

4,724 posts

241 months

Saturday 4th April 2020
quotequote all
I didn't believe OpenBanking was mandatory, seems I was wrong! Though AmericanExpress fully support OpenBanking FreeAgent have just turned the feed off. No way to re-enable it.

Whilst I agree that sharing credentials can be a risk but I have shared them with a company I trust. It's no different from storing passwords with Google or any other provider.

I guess my main issue is that I'm paying a subscription to a service to make life easier for my accountant. They still charge me exactly the same and yet I now have to manually do what I am paying them for.





Eric Mc

125,744 posts

295 months

Saturday 4th April 2020
quotequote all
I've been using Quickbooks for over 20 years and I actually like it. I often recommend it to clients.

jammy-git

29,778 posts

242 months

Saturday 4th April 2020
quotequote all
Check out Xero. Or Crunch.

Frankthered

1,688 posts

210 months

Saturday 4th April 2020
quotequote all
rustyuk said:
I didn't believe OpenBanking was mandatory, seems I was wrong! Though AmericanExpress fully support OpenBanking FreeAgent have just turned the feed off. No way to re-enable it.

Whilst I agree that sharing credentials can be a risk but I have shared them with a company I trust. It's no different from storing passwords with Google or any other provider.

I guess my main issue is that I'm paying a subscription to a service to make life easier for my accountant. They still charge me exactly the same and yet I now have to manually do what I am paying them for.
Hmmm? scratchchin

The fee I pay to my accountant includes the FreeAgent subscription fee. Not sure what you are paying, OP, but it might be worth checking how your total (FreeAgent plus Accountant) compares to the market rate.

skwdenyer

18,707 posts

270 months

Sunday 5th April 2020
quotequote all
rustyuk said:
I didn't believe OpenBanking was mandatory, seems I was wrong! Though AmericanExpress fully support OpenBanking FreeAgent have just turned the feed off. No way to re-enable it.

Whilst I agree that sharing credentials can be a risk but I have shared them with a company I trust. It's no different from storing passwords with Google or any other provider.

I guess my main issue is that I'm paying a subscription to a service to make life easier for my accountant. They still charge me exactly the same and yet I now have to manually do what I am paying them for.
When you store passwords with Google then they should be encrypted. Google doesn’t use your banking password when you’re asleep.

hepy

1,367 posts

170 months

Sunday 5th April 2020
quotequote all
Eric Mc said:
Modern software is wonderful.

It dispenses with the need to use professionals.

It never goes wrong - it's always right and it always picks up when the person who is doing the posting to the system is going to make an error.

It can deal with HMRC enquiries and will pay all your fines for you when you miss deadlines or pay incorrect taxes.

The software companies are always at the end of a phone with fully qualified individuals there to help and guide you make decisions about your business and be there for you in a rainy day./

Who needs accountants.
Mind you, the software companies actually answer the phone, unlike some accountants.

Eric Mc

125,744 posts

295 months

Sunday 5th April 2020
quotequote all
hepy said:
Mind you, the software companies actually answer the phone, unlike some accountants.
I do - always.

Eric Mc

125,744 posts

295 months

Sunday 5th April 2020
quotequote all
jammy-git said:
Check out Xero. Or Crunch.
I've used Xero too. Initially, it was junk and non-compliant with accounting standards. It's improved quite a bit over the past three or so years and is now OK.

dirty boy

14,866 posts

239 months

Monday 6th April 2020
quotequote all
As Eric says, Xero was a little behind in some aspects, but improved it's game very much so the last couple of years and now our preferred option.

Quickbooks I'm no fan of other than for the most simple accounts with minmial transactions.

I'm also annoted that there's the impending removal of access to their payroll data within a desktop version (Which is a standalone purchase) is ridiculous. Yes, there's an export, but why?!? The the audit trail and way the bank behaves for an accountant user (back end) in the online version is awful too.

It looks pretty and that's what non-accounting clients like, but that's not necessariily the best.


Eric Mc

125,744 posts

295 months

Monday 6th April 2020
quotequote all
I'm working on Xero as we speak and it's perfectly fine. In fact, in interrogation and "finding your way around the postings" mode, it is pretty good and easy to use.

rustyuk

Original Poster:

4,724 posts

241 months

Monday 6th April 2020
quotequote all
Had a pretty quick reply from FreeAgent regarding why they don't support American Express or Cater Allen (both do offer Open Banking) and I can't set this getting fixed anytime soon.

We get a discounted FreeAgent subscription via the accountancy which charges market rates. FreeAgent wasn't mandatory but we had to move to a package that supported MTD for Vat.

Will checkout the packages mentioned!


jammy-git

29,778 posts

242 months

Monday 6th April 2020
quotequote all
If you're on Xero, I'm having issues with my Cater Allen bank feed also. Cater Allen say there's no reason they can see for the issues as they've updated their system to be Open compliant. My accountants are looking into it for me and I'll post any updates here.

rustyuk

Original Poster:

4,724 posts

241 months

Monday 6th April 2020
quotequote all
jammy-git said:
If you're on Xero, I'm having issues with my Cater Allen bank feed also. Cater Allen say there's no reason they can see for the issues as they've updated their system to be Open compliant. My accountants are looking into it for me and I'll post any updates here.
FreeAgent told me CaterAllen were not production ready which is contrary to what CaterAllen are saying. Also, FreeAgent advised that CaterAllen are in the process of migrating customers to a new system and anyone on the old system won't have OpenBanking.


Tyre Smoke

23,018 posts

291 months

Monday 6th April 2020
quotequote all
I use Quickbooks for everything. I use their payroll which is incredibly easy and do all my VAT returns myself. That too couldn't be simpler.

I still have an accountant, but not sure they are earning their money any more. I pay them exactly the same as I did before I used an online accountancy software.

Eric, do you accept PM's and new clients?

jammy-git

29,778 posts

242 months

Monday 6th April 2020
quotequote all
rustyuk said:
jammy-git said:
If you're on Xero, I'm having issues with my Cater Allen bank feed also. Cater Allen say there's no reason they can see for the issues as they've updated their system to be Open compliant. My accountants are looking into it for me and I'll post any updates here.
FreeAgent told me CaterAllen were not production ready which is contrary to what CaterAllen are saying. Also, FreeAgent advised that CaterAllen are in the process of migrating customers to a new system and anyone on the old system won't have OpenBanking.
Ahhh, I see.

In all honesty I've been thinking about moving banks, probably to Handlesbanken. This might just hasten that decision.

jammy-git

29,778 posts

242 months

Monday 6th April 2020
quotequote all
rustyuk said:
jammy-git said:
If you're on Xero, I'm having issues with my Cater Allen bank feed also. Cater Allen say there's no reason they can see for the issues as they've updated their system to be Open compliant. My accountants are looking into it for me and I'll post any updates here.
FreeAgent told me CaterAllen were not production ready which is contrary to what CaterAllen are saying. Also, FreeAgent advised that CaterAllen are in the process of migrating customers to a new system and anyone on the old system won't have OpenBanking.
I've just had this back from my accountants after being in touch with Xero:
Accountants said:
Following a change in banking regulations they're having to rebuild the bank feed APIs for each bank. The Cater Allen feeds are currently being tested and Xero are expecting the bank feed to become available again by the end of this month.