Hey folkies.
Got my first complaint and I’m going to need to send a faster payment to a customer of £100. My plan is to transfer it from my personal into my sole trade as drawings.
How do I label the transfer to the customer? Can I transfer it and tag it as drawings both times?
Thanks for the help in advance. Your all super amazing on here.
Unless I misunderstood, I don’t think there was an invoice to tag as “paid from drawings”?
I would raise a credit note to the customer, then tag the payment to them as a refund against the credit note. This ensures the payment to them is recognised on your P&L as a refund.
The transfer in to the business account to cover the payment can be tagged as funds introduced/drawings.