Just set-up a new account and am baffled with the info provided about Recording Out of Pocket Expenses. The guidance states: “Enter a purchase invoice in QuickFile for the £xxpurchase and pay this into the Directors Loan Account.”
Exactly - how do I do this; as I can’t find the option to set up the DLO as a supplier.
Any help greatly appreciated.
“Into” is probably the wrong word here - you’d create a purchase in QuickFile against the supplier that you (personally) paid for this expense, and mark it as having been paid from the director’s loan bank account. If/when the company later repays you for the out of pocket expense that would just be logged as a bank transfer from the current account to the director’s loan.
I’m assuming you’re a limited company seems you’re looking for a Directors Loan Account? If that’s not the case, the process is the same with Sole Trader, except with ‘Proprietor Drawings Account’.
The DLO/PDA is a virtual bank account - it doesn’t really exist, it’s just there for the purposes of making everything tally up:
With out of pocket expenses, you can create a purchase invoice as per usual, and then tag it as paid from the DLO:
Hope that helps!
Ian - That’s sorted it
I hope there is no more confusing ‘clear and simple’ help files!