I set up a loan account to handle a specific pot of money that came into our organisation. This money needed to be kept separate as it was intended to facilitate other projects, so a separate account within Quickfile made sense.
When the money entered our current account, I tagged it as a transfer to the new loan account.
When we pay money out as part of that project, I similarly tag the outgoing amount in our current account as a transfer to that loan account.
My question is, even though the amounts seem to balance within that loan account, do I need to tag the transactions beyond allocating them to the loan account?
Eg:
I pay a monthly zoom amount of £15
bank feed pulls it into current account
I tag that as a a transfer to the loan account.
It now appears as ‘tagged’ in my bank account and as ‘tagged’ in my loan account
But… no where does it say ‘this money was used to pay Zoom’ - do I need to do this,
and if so how do I do this?
You will need to create invoices for the expenditure and not just tag as a transfer. Technically the money is still in your current account and not in a separate holding account so you will still need to create an invoice to tag as paid as the transfer isn’t showing anything has been bought.
Thank you for you time, and response. So, once I create an invoice - how do I allocate the payment? How would I match them up given the ‘tagging’ option has already been used up by the transfer?
The thread that I linked you to has some different ideas rather than using a separate bank account you can either use project tags or set up a nominal. This would be less confusing when reconciling the bank statement
Hi, great idea, although I’ve hit another problem. That project only has a few associated transactions but it’s been going since last year, so the first two transactions have been locked in due to my accounting period ending, so unfortunately I can’t start from scratch, but figure I can do all remaining transactions using project tags etc.
Is there a way to transfer the remaining amount from the loan account to the current account, and all subsequent payments linked to that funding can be done using project tags?
Is your bank account balance the same on quickfile as your actual bank? I’m guessing it probably isn’t from what you’ve described so if that’s the case you could add a correction entry and tag that as a transfer out the loan account. Then it should all balance again.