Can anyone please advise how to enter a purchase that was paid for by my company, but is for personal use?
I’m trying to transfer from Quickbooks and in that system, I entered any items of this nature using the account category ‘Owners Drawings’ so that it was logged as a personal drawing from the business account and not logged as a business expense. In Quickfile, though I cannot find an ‘Owners Drawings’ category, only a ‘Directors Remuneration’ which isn’t correct for my business.
Also, I am VAT registered, so also need to be sure the VAT from this purchase is not added to my VAT return. In Quickbooks, I would enter the VAT rate as N, so that no VAT was accounted for and the gross value equalled the full purchase amount but I am not sure how to do so in Quickfile - the only option that looks likely to me is ‘Outside the Scope of UK VAT’ - would ticking this ensure the VAT isn’t claimed on VAT return?
Thanks for any help - I’m still finding my way because it’s very different to the system I am used to.
Hi,
If you are a sole trader there is a drawings account in your banking section. When the private purchase/transaction reaches your bank or credit card account or petty cash, tag it as something not on the list and choose your drawings account.
For Ltd it is called directors loan account. The steps are the same
Hope this helps
Hi there - thanks for your response, much appreciated.
Just to check I understand you correctly if I may - you mean I should enter the bill as normal using the existing categories (for instance General Purchases) and log the VAT at the standard rate, as per the bill, but then ‘tag’ it as drawings upon reconciliation?
I need to get to grips with the tagging process because I don’t quite understand how it works, as I’m used to just reconciling against a paper statement, but hopefully I will work it out!
Hi,
If it is private use, you don’t enter/create invoices. When you upload your bank statement to quickfile (csv file or bank feed) for all your business expenses create invoices as normal; for all private purchases - tag those to “something not on the list” and choose your Drawings Account. No Invoices.