I have a free account at the moment, which I thought would be enough for a couple of years as very low transactions. However just checked and my account is already classed as ‘L’. I had a look and it seems that every transaction in the current account is also shown in two other places (Control Account and General Purchases). This means the 1000 free ledger entries are really only 333 transactions. Is this right?
Hello @jlee6588
QuickFile, like most other accountancy packages is based on double entry bookkeeping.
This means that every transaction would make at least 2 nominal postings (Money In and a Money Out / Debit and a Credit).
I recommend taking a look at the following guides and checking out the ledger count, so you can see how this is broken down for your account:
Account size explained
https://support.quickfile.co.uk/t/account-size-explained/8781
What items make up your ledger count
https://support.quickfile.co.uk/t/how-to-determine-what-items-make-up-your-ledger-count/9384
How to check the size of your account
https://support.quickfile.co.uk/t/how-do-i-check-the-size-of-my-account/9317
I hope that helps.
As a guide, if you’re not VAT registered then a total of five fully-paid-up sales and/or purchases per week on average will trip the “L” classification, even without any other bank entries like transfers between accounts, using a holding account for a payment provider, taking drawings, making journals, etc. And that’s 5 in total (e.g. 3 sales and 2 purchases), not 5 of each kind. If you are VAT registered then it’s roughly 4 per week.
Each sale or purchase generates at least two nominal postings (3 if you’re VAT registered)
- credit general sales / debit the expense code
- (if VAT registered, credit sales tax control / debit purchase tax control)
- debit debtors control / credit creditors control
When the sale/purchase is paid that’s another two nominal entries
- credit debtors control / debit creditors control
- debit / credit bank account
4 postings per sale/purchase times 5 invoices per week times 50 weeks per year is the 1000 threshold.
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