OK, I may be doing this incorrectly (I think I am) so wanted to get advice out there.
At the moment, I am paying for items for my company.
When I enter a new purchase, I am putting it paid by the directors lone account.
However I now realise this may have created an issue as when I try and pay myself back and go into banking, in the directors loin account it lists all my purchases as money out, so if I try and pay myself, the tag only has directors loin on more money out rather than money in.
How should I be accounting for items i am paying for for the company and how should I be accounting for money I take out.
Thank you.
Ideally you should transfer funds to company bank account and mark invoices paid from company bank. Using Dir a/c for purchases payments will record entry as out just like normal bank a/c and when you record money out in main bank account just tag that as Bank transfer between accounts and pick director account
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