I used my company business bank card instead of my personal bank card for 2 small transactions (coffees) on holiday in France. How should I correct this in the bank transaction records? can I make a transfers into the company account of the same amounts and tag them in some way to show they are none business related transactions?
Hello @gary_barrett
You can move them in the chart of accounts
View the account under Chart of accounts (Assets and liabilities section)
Select the transactions > Move to new code > Select the directors loan /proprietors drawings account.
If you’re self employed then you’d tag the transactions as transfers to your proprietor drawings account - you’ve drawn money out of the business for personal use.
If your business is a limited company then tag them as transfers to your director’s loan - same thing, you’ve borrowed money from the company for personal use (and you’ll eventually have to either pay it back or offset it against salary or dividends).
Thanks, I have tagged the transactions as Directors Loan Account, I will pay the money back and wonder could you advise how to tag the repayment transaction please?
The repayment is simply a bank transfer the other way (from director’s loan to current account). The DL account balance at any given time is the amount you owe the company (if it’s a positive balance) or the company owes you (if it shows as overdrawn).