What are Unallocated Payments?

Jordan Macey

April 21, 2021

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Small Business Accounting

Unallocated payments are where the client has given you more money than they owe.

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Where can I find FreeAgent accountants?

You can do so using FreeAgent's ‘Find an Accountant' resource.

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What are BACS and CHAPS payments?

CHAPS-an abbreviation for Clearing House Automated Payment System-is a same-day bank-to-bank payment system. It is typically used for large, one-time payments, as the transfers are relatively expensive to process. There are no upper or lower limits to the amount that can be transferred.


BACS, or Bankers' Automated Clearing Services enables payments to be made electronically from one bank to another. The transfer method handles all debit and credit card transactions, has an upper limit of £250,000 per transfer and is mainly used for low-value transactions. BACS payments take three working days to clear.


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What is a Trial Balance?

A trial balance is a report that lists the balances of all general ledger accounts of a company at a certain point in time.

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What is Depreciation?

Depreciation is the measurement of the decline in the worth of an asset. Common methods of depreciation include: straight line, units of production, sum-of-years-digits and double-declining balance.

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What are Aged Debtors?

An aged debtors report shows a list of customers (debtors) who owe your business money, as well as the amount owed at any given time.

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5 Key Benefits of Accounting Software when Self Employed

As a self-employed person or small business owner, sing a spreadsheet to manage your accounting may once have sufficed in the initial stages of running your business.

But as your company grows, the following occurs: your financial data becomes increasingly complex, you're adding on new accounts and you may be bringing on additional staff. You now require a scalable solution-and you're wondering if it's time to transition from spreadsheets to accounting software.

If you're still on the fence, and unclear about the value that an accounting software brings to your business, here are five key benefits you'll reap if you make the switch:

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What is Statutory Adoption Pay?

It is the amount of money that must by law, be paid to an adoptive parent when he or she takes time off to adopt a child, or have a child through a surrogacy arrangement.

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What are Taxable Supplies?

A taxable supply is any supply made in the UK which is not exempt from VAT.

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What are Payment Terms?

Payment terms indicate when payments should be made and how. These terms are usually included in the invoices generated by companies and sent to customers.

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Is there a FreeAgent mobile app?

Yes, FreeAgent offers a mobile accounting app.

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What is Statutory Paternity Pay?

Statutory Paternity Pay is the amount of money that must by law be paid to the father of a new baby while he is away from his job.

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What are Accruals?

Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.

Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.

One example of accrued revenue is accrued interest.

On the balance sheet, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.

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What is Taxable Turnover?

Taxable turnover is the turnover on which the seller is liable to pay tax.

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What is Amortisation?

In business accounting, amortisation is a method of calculating the value of a business asset over time. It is the process of spreading out the cost of an asset over its useful life.

In relation to loans, amortisation refers to the spreading out of loans into a series of fixed monthly installments.

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What banks does Xero integrate with?

Xero connects with most banks in the UK, including Barclays, HSBC, NatWest, RBS and more. You may view the full list of banks here.

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What is a Balance Sheet?

A balance sheet is a financial statement that provides a snapshot of the financial condition of a company, showing how much it owns (assets), owes (liabilities) and the amount that is left over for its owners (owners' equity) at a specific point in time. It is typically completed at the end of a month or a financial year.

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What are Aged Creditors?

An aged creditors report shows who your business owes money to, as well as the amount owed at any given time.

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What are Authorised Agents?

Through the agent authorisation process, a client is able to authorise an agent to deal with HMRC on their behalf. Further information is available on the HMRC website.

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What are Supplier References?

A supplier reference (or trade reference) refers to a report detailing the payment history between a business customer and its supplier or vendor. It enables a supplier to check your creditworthiness and find out if you're a reliable customer before they offer you credit.

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What banks does FreeAgent integrate with?

Presently, FreeAgent supports over 40 feeds from banks worldwide. You may refer to their resource to see which banks are listed, or search for your bank using the search tool in the Banking area of FreeAgent.

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