I am a sole trader working on a cash basis accounting setup.
Lets say I do a market and take £200 card payments and £100 cash.
So I create an invoice for £300 for the days trading, when the card payments come through the bank I Tag the £200 (less the fee) to the invoice. where should I record the cash I received? This cash will be used by me personally and may or may not be put into any bank.
Hi,
record the cash in a cash bank account, which should already be visible on your bank accounts screen. After creating the record click tag me (red button on the right hand side, next to the cash entry) and create an invoice. If you want you can add a proofing till printout or so.
When you bank your cash, it will be visible in your bank account in quickfile the next day (if you use a bank feed) or use the refresh button on your current bank account screen to update your current bank account in quickfile. Tag that transaction as a transfer between accounts and click on cash account. Done
For the card payment, if not already done, create a card payment bank account (merchant account), enter your sales (in your example £200) and create an invoice by clicking the tag button again. If you want you can add a proofing copy from your card payment provider.
When the payout comes through to your current bank account tag it also as a transfer between accounts and click on your card payment merchant account.
Now, your card payment merchant account should show a difference which should match the card payment provider fee. Create a money out transaction in your card payment merchant account for that amount and tag it to Bank Fees or so. Done
Hope this helps
Thanks for replying. a couple of points.
I don’t bank the cash i use it to pay personal bills etc, so in effect it is drawings (i think that is the term)
currently I create an invoice and then assign payments to it.
for the card payment i just tag it from my bank account when it has been received, is that ok?
No problem, then tag it as drawings in your cash account and create a money out transaction and link it to your drawing account.
You should use a card payment merchant account and do the steps I descript earlier. It is not more work. Only at the beginning when you setup everything is a bit work involved. Later you can setup Auto-tagging and most things will be tagged automatically. This way is much clearer and cleaner, it shows every step from where the money comes and where it goes.
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