Does anyone know where i can help using QuickFile please
Currently I have added the business account and I have added the first invoice which was paid today.
I dont have the budget for an accountant and I don’t understand how to report transactions
I have recorded the invoice payment into the business account and so profits and losses are looking accurate. I then recorded the transfer from the business account to my personal account as drawings (which it now shows the balance in proprietors drawing account)
What I don’t know how to record which might be basic for some of you all is:
How to report paying money into the business account from my personal account
How to record expenses (food, drink etc) made using the business debit card?
Money in to the business is tagged as drawings.
Is your business debit card linked to the business account you have in quickfile?
No I’m going to be manually inputting everything at the end of every day as the business transactions are little to rare
Why does the balances not make sense?
Let’s say for examples sake
The balance in the business account is £0. I invoice Jane for £30. She pays that into the business account. I make it as paid in full. The balance in the business account is £30.
At the end of the month I draw that £30 into my personal account which is tagged as drawings. The proprietor drawing account shows as £30.00. The business account £0
Let’s say I then add £20 to the business account from my personal account to cover business expenses. Your saying I should tag that as drawings. Why does the proprietor drawing account balance then show as £10?
Edit: I think I’m not intelligent enough for this right now, I knew it was a risk taking on the accounting myself I’m just hoping I can get the grasp of it
Generally the propieters drawing account has a negative balance as this is the money that the business would owe to you - money that you’ve put in or if you’ve used a personal card to pay for something business related
Thank you. So this is natural and nothing to be concerned about. Why in the scenario above does £30 being taken out show the drawing account as £30 not -£30
£30 being taken from the business means that you’ve paid yourself back so would reduce the negative balance. Since you have nothing owing to you then this results in a positive balance in the drawings account
Right, so is that why when I put £20 of my own money into the business after that it drops to £10 in the proprietor drawing account as the business owes me £20?
Right, that makes sense
And then lastly I think I have all basis covered her as like I mentioned before. It’s not a complex business it’s just a side hobby that I turned into a little money maker.
Let’s say I want to buy myself a drink while I’m out working “whatever I might define as work” I add that transaction under the business account snd always select proprietor drawings and put my name against it?
That is the gist of what I got from the other comment
Don’t have to put your name against it but yes anything you buy through the business that’s not wholly and exclusively related to the business trade would be tagged as drawings.
How would I be able to definite the difference?
Quick file makes you put a name under any new transaction you add for some reason
Well. Did you need to buy it for the purpose of operating the business. If the answer is no. Its not wholly or exclusively related to it.
Why not take a look at Quickfile’s Knowledge Base?
It will help with your bookkeeping.
It is at this link
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