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Accounting for starting balance or use suspense account?


#1

Hey,

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.

Thanks!


#2

Hi @Halo3

Welcome to QuickFile :slight_smile:

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.