Free bookkeeping software for a Community Interest Company CIC on a laptop screen in a UK small business office
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Free Bookkeeping Software for a Community Interest Company CIC

How a Community Interest Company CIC can use FreeAgent for day-to-day bookkeeping, including whether eligible CICs can get FreeAgent for free, and where the software stops short of CIC statutory compliance.

Written by a senior charity accountant
9 minute read
Updated September 2026

Free bookkeeping software for a Community Interest Company CIC may be available through FreeAgent if your Community Interest Company holds an eligible NatWest, Royal Bank of Scotland or Ulster Bank business current account.

For many small Community Interest Companies, that can be a genuinely useful way to keep digital bookkeeping records, connect the business bank account, raise invoices, record expenses and give an accountant access to up-to-date financial information without paying a separate monthly FreeAgent subscription.

There is, however, an important limitation. FreeAgent can handle a Community Interest Company CIC's day-to-day bookkeeping, but it does not support every CIC statutory filing requirement, including the CIC34 Community Interest Company report.

Key Takeaways

  • A Community Interest Company CIC can use FreeAgent for day-to-day bookkeeping.
  • CICs with an eligible NatWest, Royal Bank of Scotland or Ulster Bank business current account may qualify for a funded FreeAgent subscription.
  • You normally claim the free subscription by adding the eligible bank account to FreeAgent and enabling the bank feed.
  • FreeAgent can record income, expenses, invoices, bills and bank transactions.
  • FreeAgent does not support the CIC34 Community Interest Company report.
  • FreeAgent does not support every type of CIC statutory accounts or Corporation Tax filing.
  • Mettle offers free FreeAgent to eligible customers, but Mettle does not currently accept Community Interest Companies.
  • CICs that do not qualify for free FreeAgent may be considered for FreeAgent's not-for-profit discount on a case-by-case basis.

Can a Community Interest Company CIC use FreeAgent?

Yes. A Community Interest Company CIC can use FreeAgent for day-to-day bookkeeping. FreeAgent recommends setting up a CIC using the UK Limited Company business type and selecting "Charity/NFP/CIC" as the business industry. The software can then be used to maintain the Community Interest Company's underlying accounting records.

This can be particularly useful for smaller CICs where directors currently manage their records using spreadsheets, bank downloads or paper receipts. FreeAgent can help bring those records into one place.

A Community Interest Company CIC can use FreeAgent for tasks such as:

importing bank transactions
categorising income and expenditure
raising sales invoices
recording supplier bills
uploading receipts
monitoring amounts owed by customers
recording director expenses
reconciling the bank
monitoring financial performance
giving an accountant or bookkeeper access

In our experience, one of the biggest advantages is having the bookkeeping kept up to date throughout the year, rather than trying to reconstruct 12 months of transactions when the annual accounts become due.

How can a Community Interest Company CIC get FreeAgent for free?

A Community Interest Company CIC may qualify for free FreeAgent if it holds an eligible business current account with NatWest, Royal Bank of Scotland or Ulster Bank. The CIC generally retains access while it continues to meet the eligibility requirements and keeps the qualifying bank account.

FreeAgent's guidance confirms that a Community Interest Company with a qualifying business current account can be eligible for a funded FreeAgent subscription.

Which banks can provide free FreeAgent to a Community Interest Company CIC?

Bank FreeAgent funded subscription Community Interest Company CIC position
NatWest Yes, subject to eligibility CICs can qualify
Royal Bank of Scotland Yes, subject to eligibility CICs can qualify
Ulster Bank Yes, subject to eligibility CICs can qualify
Mettle FreeAgent available to eligible Mettle customers Mettle does not currently accept CICs
Other banks Not normally bank-funded Paid FreeAgent or possible CIC discount

FreeAgent is part of NatWest Group, which is why qualifying customers of these banking brands may receive access without paying FreeAgent's normal subscription charge.

How do you claim free FreeAgent for a Community Interest Company CIC?

To claim free FreeAgent for a Community Interest Company CIC, you normally need an eligible NatWest, Royal Bank of Scotland or Ulster Bank business current account, then connect that account to FreeAgent and enable the Open Banking bank feed. FreeAgent can then confirm whether the CIC qualifies for the funded subscription.

01

Check whether your Community Interest Company CIC has an eligible bank account

Check whether the CIC already has a business current account with NatWest, Royal Bank of Scotland or Ulster Bank. The bank account should be in the name of the Community Interest Company rather than a director personally.

02

Create your FreeAgent account

Set up FreeAgent using the correct company information. For a Community Interest Company CIC, FreeAgent advises users to select:

Business type: UK Limited Company Business industry: Charity/NFP/CIC

Make sure the correct information is entered when the account is created.

03

Add the CIC business bank account

Within FreeAgent, go to Banking > Bank Accounts and add the Community Interest Company's qualifying NatWest, Royal Bank of Scotland or Ulster Bank business current account.

04

Enable the bank feed

Connect the bank through Open Banking. This allows transactions to flow automatically into FreeAgent and helps FreeAgent establish whether the account is eligible for a funded subscription.

05

Switch to the funded FreeAgent subscription

Once eligibility has been confirmed, FreeAgent may display an option advising that the account qualifies for a NatWest Group funded subscription. Follow the on-screen instructions to switch the account.

06

Give your accountant access

Once your Community Interest Company CIC is set up, invite your accountant to FreeAgent. Your accountant can then review:

  • bank transactions
  • income classifications
  • expenses
  • director transactions
  • grants
  • payroll entries
  • year-end balances

This can make preparation of the annual accounts considerably easier.

What if the Community Interest Company CIC already pays for FreeAgent?

An existing FreeAgent user may be able to switch from a paid subscription to a bank-funded subscription after adding an eligible NatWest, Royal Bank of Scotland or Ulster Bank account and enabling the bank feed. This is worth checking if your Community Interest Company currently pays FreeAgent each month.

Do not assume the change happens automatically simply because the CIC banks with an eligible bank. Check the FreeAgent account funding status after connecting the business bank account.

Can a Community Interest Company CIC open a Mettle account to get FreeAgent for free?

No. Although Mettle provides FreeAgent to eligible customers, Mettle does not currently accept Community Interest Companies. This is important because many articles online recommend: "Open a Mettle account and get FreeAgent for free."

That route may work for eligible sole traders and ordinary limited companies, but it is not currently available to a Community Interest Company CIC. A CIC should instead check whether it already has, or is eligible for, a NatWest, Royal Bank of Scotland or Ulster Bank business current account.

You should not change a CIC's banking arrangements solely to obtain bookkeeping software without considering the bank's fees, services, payment facilities and suitability.

What if the Community Interest Company CIC banks somewhere else?

A Community Interest Company CIC banking elsewhere can still use FreeAgent, but it may need to pay the normal subscription. FreeAgent also considers discounts for CICs and other not-for-profit organisations on a case-by-case basis.

If your CIC does not have an eligible NatWest Group bank account, you can contact FreeAgent and explain:

  • what the Community Interest Company does
  • its community purpose
  • its social objectives
  • the activities it carries out
  • its website, where applicable

FreeAgent may then consider whether a not-for-profit discount is available. This gives Community Interest Companies two potential routes:

Eligible NatWest Group business account

Potentially funded FreeAgent.

Other business bank

Use a paid subscription or ask FreeAgent whether a CIC discount is available.

Is FreeAgent suitable for Community Interest Company CIC bookkeeping?

FreeAgent can be a suitable bookkeeping system for a small or relatively straightforward Community Interest Company CIC, particularly where the main requirement is digital record keeping, bank reconciliation, expense recording and providing reliable financial information to an accountant.

The important distinction is between bookkeeping software and statutory CIC compliance. A Community Interest Company has additional obligations that do not apply to an ordinary limited company. FreeAgent can help maintain the underlying books and records, but it does not replace the full statutory accounts and CIC reporting process.

Can FreeAgent file the CIC34 Community Interest Company report?

No. FreeAgent does not currently support the CIC34 Community Interest Company report. A CIC must deal with its CIC34 separately as part of its annual Companies House compliance.

The CIC34 explains how the company has benefited the community and includes information about matters such as:

  • community activities
  • stakeholder involvement
  • directors' remuneration
  • transfers of assets
  • dividends where relevant

This means FreeAgent should not be treated as a complete Community Interest Company filing solution. You can read more in our guide to the CIC34 report explained.

Can FreeAgent file Community Interest Company CIC annual accounts and Corporation Tax returns?

FreeAgent can maintain the bookkeeping records needed for Community Interest Company accounts, but its statutory filing functionality may not support every CIC structure or filing requirement. Community Interest Companies can be limited by shares or limited by guarantee. This distinction matters because some accounting software supports only particular company structures for direct filing.

Your accountant can still use the bookkeeping records maintained in FreeAgent to prepare:

  • statutory annual accounts
  • Corporation Tax computations
  • CT600 Corporation Tax Returns
  • Companies House filings
  • supporting year-end schedules

You can see how we handle this through our CIC annual accounts preparation services and CIC Corporation Tax Return CT600 filing services.

What records should a Community Interest Company CIC keep in FreeAgent?

A properly maintained FreeAgent file should allow somebody reviewing the CIC to understand where money came from, what it was spent on and how the transactions relate to the Community Interest Company's activities.

Record Good practice
Bank transactions Explain and reconcile regularly
Sales invoices Raise invoices through the CIC
Supplier invoices Upload and retain supporting documents
Expenses Record the business purpose
Grants Record the provider and purpose
Restricted funding Keep separate records where necessary
Director expenses Keep receipts and explanations
Assets Record significant purchases correctly
Payroll Reconcile wages and PAYE
VAT Maintain appropriate digital records if VAT registered

For Community Interest Companies receiving grants, particular care should be taken with grant income. A grant should not automatically be treated as ordinary sales simply because money has entered the bank account. The grant agreement should be retained so your accountant can determine the appropriate accounting treatment.

Does free FreeAgent mean a Community Interest Company CIC no longer needs an accountant?

No. Free bookkeeping software and professional year-end accounting are different things. FreeAgent can make bookkeeping much easier, but directors remain responsible for ensuring that the CIC's statutory accounts, Corporation Tax obligations, CIC34 report and Companies House filings are completed correctly.

Good bookkeeping can, however, make your accountant's work more efficient. Instead of providing an accountant with unexplained spreadsheets, hundreds of uncategorised bank transactions, missing receipts and incomplete grant information, you can provide a properly maintained FreeAgent file. This gives your accountant much better information and can reduce the number of queries at year end.

How should a Community Interest Company CIC use FreeAgent throughout the year?

The best way to use FreeAgent for a Community Interest Company CIC is to keep records updated regularly rather than waiting until the annual accounts are due. Monthly bookkeeping and bank reconciliation give directors more reliable information about the organisation's finances.

A simple monthly routine could be:

  1. 1Import or review bank transactions.
  2. 2Explain uncategorised items.
  3. 3Upload missing invoices and receipts.
  4. 4Reconcile the bank balance.
  5. 5Review amounts owed to and by the CIC.
  6. 6Check grant income and related expenditure.
  7. 7Review director transactions.
  8. 8Check payroll and VAT balances where applicable.
  9. 9Review the management profit and loss account.
  10. 10Ask your accountant about unusual or significant transactions.

FreeAgent for a Community Interest Company CIC: quick checklist

If you are asking, "Can my Community Interest Company CIC get FreeAgent for free?", work through these questions:

  1. Is the organisation a registered Community Interest Company?
  2. Does the CIC have a NatWest, Royal Bank of Scotland or Ulster Bank business current account?
  3. Has FreeAgent been set up using the correct business details?
  4. Is Charity/NFP/CIC selected as the business industry?
  5. Has the qualifying bank account been added?
  6. Has the Open Banking bank feed been activated?
  7. Has FreeAgent confirmed the funded subscription?
  8. Has your accountant been given access?
  9. Do you understand that FreeAgent does not prepare the CIC34?
  10. Have you arranged the CIC's statutory accounts and Corporation Tax compliance?
FAQs

Free bookkeeping software for a Community Interest Company CIC FAQs

Straight answers to the questions CIC directors ask most about getting FreeAgent for free and using it for bookkeeping.

Conclusion: FreeAgent can be a cost-effective bookkeeping solution for a Community Interest Company CIC

Free bookkeeping software for a Community Interest Company CIC is genuinely possible where the organisation has an eligible NatWest, Royal Bank of Scotland or Ulster Bank business current account.

For many smaller Community Interest Companies, FreeAgent can provide a more structured bookkeeping system than spreadsheets alone. It can help directors keep transactions organised, reconcile the bank, retain digital records, raise invoices, monitor income and expenditure, track grants, collaborate with their accountant and maintain better financial oversight.

However, FreeAgent is not a complete Community Interest Company compliance solution. The CIC34 Community Interest Company report must still be dealt with separately, and statutory accounts and Corporation Tax filing may require appropriate professional accounts production and tax software.

At Charity Accountants, we support Community Interest Companies with bookkeeping, annual accounts, Corporation Tax Returns and CIC reporting. If you already use FreeAgent, or would like help setting up your Community Interest Company CIC bookkeeping correctly, speak to our specialist CIC accountants.

Book a Free Consultation CIC Accounting Services

Important: FreeAgent and bank eligibility requirements can change. Always check the current terms before opening or changing a business bank account solely to obtain software access.