After changing back to Sole Trader I set up a new Quickfile account & opted for the Yodlee bank feeds. I use Lloyds bank but have a problem I cannot seem to get around. I get duplicate entries, which is probably down to something I am doing, but could do with some advice.
I issue invoices to clients, which they then pay as cash. I deposit that cash into the bank & next day it shows as a lump sum payment in, say £140 which was for 2 invoices. I cannot make those 2 invoices match that £140 so have to register it as a manual payment which leaves me with double the amount in!! I know there is a way of putting money into a ‘virtual account’ & then p[aying the invoices out of it but I do not have a clue as to how to do this.
So as an example I end up with:
XXXXXXXX PAYMENT IN £140 (from auto feed)
XXXXXXXX PAYMENT FROM (CUSTOMER) £100
XXXXXXXX PAYMENT FROM (CUSTOMER) £40
What I am trying to do & failing is make the invoices pay from the auto-feed input to save doubling up on entries which I can not then reconcile!!
The way to avoid this would be to go with the virtual account option - but the good news is, as it’s cash, part of it has been done for you, in that you have a “Petty Cash” bank account.
So when your client pays you the cash, you can either:
Create a transaction in the Petty Cash bank account and tag it to the relevant invoice(s), or,
Go to the invoice (if there’s just one), click Log Payment and mark it as paid from the Petty Cash bank account
Then, when the money hits your bank account (the £140 in this case), you would tag this transaction in your Current Account as a transfer from the Petty Cash bank account. This would balance the Petty Cash account (bringing the balance to zero in this case), and you have the transaction in your Current Account matching your bank statement.
In fact, you could even set up a tagging rule so that when the transaction is created in your Current Account, we automatically tag it as a transfer for you, so half the work is done
I hope that helps, but please let me know if you have any questions
Hi & many thanks for your assistance. I think I have managed to wrap my head around that & with practice, I am sure it will become easier but at the moment I am thinking the bank feeds are causing more work!! Also want to say thanks to your great team who always give helpful & speedy advice
