If a sole trader has bank account 1 for the main business activities, and bank account 2 for rent and rental related expenses, how are the rent payments added/assigned/tagged as income, and also how are the expenses added/assigned/tagged?
Assigning transactions to nominals such as rent, income etc., would be done through a sales or purchase invoice. You can set the nominal in the invoices themselves and then tag the payments to this invoices.
Thank you for the reply, but I must say that I am new to QuickFile and accounting terminology, as I am moving from logging accounts in a spreadsheet for many years and now wanting to go paperless and also to better categorise transactions, and I still remain unclear as to how to log what I call non-invoiced income.
Since the original post, what I thought I would do is to create a bank account (current account) in QuickFile for where the rental income comes in.
I then manually [Input New Transaction]s and tag them as rent ( as I have been doing in the offline spreadsheet). I assume that this will work but advice would be appreciated.
Apologies - I thought you were looking to tag rent as an expense (e.g. a purchase invoice).
If you’re looking to basically see a breakdown of income vs expenses for individual properties (assuming you’re not an agent), then you may want to take a look at project tags, and have one for each property. This would also allow you to create a P&L report for each tag.
Your bank statement on QuickFile should ideally reflect your true bank statement where possible, so any income or outgoings should be tagged to the relevant invoices from there.
I hope this helps?
In many cases the best way to handle this in QuickFile is to create an invoice anyway, typically to a dummy client named something like “Rental income”. While it is possible to tag directly to a nominal code I only do that for things like bank interest where there’s no need for an audit trail beyond the bank statement itself.
All the useful stuff in QuickFile requires invoices, like attaching scanned documents to back up a transaction, the project tagging feature, etc. and most importantly anything relating to VAT.
Hello, I’m not sure of project tags is the solution here, and so I may have to clarify further but thank you for the reply.
Ian, your suggestion may have the solution. I wasn’t quite aware that an invoice could be created from a manually inserted income payment. That would also help any issues relating to not having an invoice for respective transactions. All being OK that, creating the invoice not a long process, which I can only discover by attempting it. Thank you.
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