How to account for own money put into the business

Accounting
1

Hello

I was a sole trader up until 31 March and have just formed a Limited Company. I have opened a new Quickfile account to deal with the accounting, as well as a new bank account, which currently shows a nil balance. My question is, how can I import money from my personal account into the business current account in Quickfile so that it doesn’t show as taxable income?

Many thanks in advance

Andy

2

Enter receipt in your bank and tag it against director loan account

3

There’s a good Limited Company primer here.

4

I have the same query about directors loan account but im confused by your answer…

If I input the receipt and tag it as being from the Director Loan Account then the balance of the DL account becomes a minus figure. But, If I put money into the business from my own pocket (I assume this needs to be accounted for) the loan account should be either in the black because money was put in, not taken out, or at least a zero balance as the money I put in was then used to purchase tools and materials etc.

Peter

5

This is correct, as from the perspective of the company, the loan account is in the red. The company needs to pay that money back one day so it should show as negative and appear as a liability on the balance sheet.

6

Thanks Glen

I have also paid for tools etc via paypal, amazon (personal bank transfer) and personal credit card.
Nothing I have purchased so far has been from company funds.

From what you have said I should put everything down as being DLA?
Is there a way to keep everything tidy so I can tell at a later date (for a refund on broken equipment for example) that credit card “x” was used rather than paypal?

Many thanks
Peter

7

You are correct, if you bought these items out of your own pocket they should be tagged as paid from the DLA.

have you tried using the Receipt Hub? This will allow you to use your smartphone (iPhone or Android) to snap the receipt and upload it to the hub, you can then link it to your purchases. You’ll have a full scan of the receipt linked to your accounting records, usually this will also indicate the last 4 digits of the card you used to pay with.