I made a purchase on my credit card for 700ish for general purchases which is cost of goods,
I also made 400 pounds of personal purchases how can i show this on my quickfile that 400 is personal transactions on my card.
This is the same for paypal i have 5.99 go out for a personal payment how can i show this was from my earning but a personal payment.
Are you a limited company or a sole trader?
Sole trader reselling to eBay so my PayPal comes automatically
Any personal purchases (e.g. that you made through the businesses bank account for yourself, and not for the business) should be tagged as a transfer to the ‘Proprietors Drawings Account’.
Any personal payments would just then need to be journalled. This topic shows you how to do this.
Hope that helps!
So I would send all personal payment to drawing account this includes PayPal personal purchases and I would journal the personal payment to where
By journal u mean tag?
If you make a personal purchase using PayPal, when the money leaves the account, instead of tagging it to a purchase invoice (which would affect your profit and loss), you would tag it as a transfer to the proprietors drawings account.
By journal, I mean the journal functions under ‘Reports’. The topic I linked to above shows you a step by step approach to using these for the purpose of drawings and introducing capital.
Ok what happens to that figure at the end of year just delete it ?
So if I invested £50 initially in stock I’ll add that as a purchase and send it to drawings account ?
Cause I got £100 or so worth of stock and don’t know how to account it the £100 came out of my pocket to buy the stock but on the accounts where did the £100 come from I’m confused, thanks for your help so far mate
Do I just ignore the drawings figure as it won’t be part of net income, if I withdraw from PayPal account for example for my own use do I just send to drawings or send to my main bank account which I would send it to anyway not drawing account and then if I spend from my bank account do I need to update it on QuickFile to say what I spent on personal or as long as I send the money to my main bank account and it’s recorded to say I sent £30 to bank and if I spend and withdraw would I need to log this as a withdrawal or I can just spend on person as its logged to say that the £30 came from my PayPal account does that make sense
So your payment on the PayPal account (e.g. £200) would be tagged as a transfer, like so:
Then, this would show in your proprietors account:
You can if you wish just delete the PayPal transfer rather than tag it to the proprietors account - the choice is yours. Legally, there’s no separation between you and the business.
If it’s tagged to the proprietors account, it would show that account as in credit (e.g. there’s money in that account). This would show as an asset on your balance sheet, which it isn’t. It would need to be journaled (this could be weekly, monthly, quarterly or even at year end - the choice is yours). The guide I linked to above shows this.
If I delete the PayPal transfer it won’t show the correct balance on PayPal or would it? I want PayPal account to match QuickFile I also received a refund of £5 for a purchase which was before the buisness adventure which is now affecting my PayPal balance where do I send this as I don’t have a purchase invoice to give it to my self as a refund
Also I have checked the link but still don’t quite understand it’s so confusing I don’t get it if I send the money to drawing account it doesn’t explain how to journal it sorry if I’m making your head hurt but I have tried so long to work this out.
can you skype me on friday for a fee so i can get this right
I’m afraid we don’t offer direct support this way. We operate on a central support system (these forums) so all users can benefit.
The best way to record it, is tag the outgoing sum of money for personal expenses as a transfer to your drawings account. If the £5 was before the business, it would be treated in the same way - tag it as a transfer.
The link I used shows you a few quick clips of making sure you have the correct setup, and then talks you through a journal. If you don’t understand journals, I’d recommend having a scout around on the forums and through our knowledge base. If you are struggling with them, it may be best to employ an accountant to complete these far you to ensure they’re all correct. The exact entries and examples are in this post