Do I enter my directors loan account expenses straight into my current account and then tag?

Accounting
1

I have entered expenses from my directors loan account into my directors loan account. I think in the past I entered them into the current account and let quickfile reconcile that

So do I need to do that? Do I need to start again and enter those expenses straight into the current account?

2

What exactly do you mean by “director’s loan account expenses”?

  • when your business incurs an expense, you generally record that as a “purchase” in QuickFile
  • if the expense was paid from the company account then you log the purchase as having been paid from the current account
  • if the expense was paid using personal funds by the director then you log the purchase as having been paid from the director’s loan account
  • when the company pays back the director, you tag that payment as a bank transfer from the current account to the director’s loan

What matters from an accounting perspective is that the “purchase” record matches the details of the invoice or receipt you received from the supplier, and (if you’re VAT registered and on cash accounting) that the recorded date of payment is the date on which the supplier was actually paid.