So I’ve started using QF for an established business from the start of its current financial year.
After adding a starting balance in the current and directors loan account, how to I account for these so that they aren’t appearing in the suspense account?
The current account contains retained profits, VAT and CT owed from the previous financial year etc. The directors loan account has funds that were borrowed from the current account.
I recognise this is likely more of a general accounting question rather that a QF specific one, hopefully someone can help.
Welcome to QuickFile
What did you use before QuickFile? The best way to start usually is by importing a trial balance. This would set up all this for you and account for everything correctly.
You can still use your approach - there’s nothing wrong with that, it just take s a bit more work. Basically, the suspense account is used because we don’t know where that balance originated from. There would have been a journal created for you (Reports >> All Journals) which would just need to be edited to account for it.
I’m revisiting this as I tidy up my accounts ready for year end submission. I can’t import a trial balance as I was not use accounting software prior to this. I have some spreadsheets and my year end accounts for the previous years!
Opening balance for the current account was fairly straight forward as the balance consisted of tax liabilities and retained profits. However I can’t work out how to account for some assets and an overdrawn directors loan account.
I’ve created the respective journal entries and had to use the suspense account to balance these. It remains uncertain where some of these balances originated from (e.g. some assets were purchased through the DLA, some using the current account), where as the DLA was certainly overdrawn through accessing funds in the current account. What is the best way to deal with this? What are the options?
As this will affect what you submit to HMRC I would recommend speaking to an accountant to make sure that everything is where it should be. There are a number of accountants which are familiar with the QuickFile system if you don’t have one of your own The QuickFile Accountant Directory
As I am not an accountant I wouldn’t want to tell you something incorrect that might impact your accounts.