Hi there, I have currently set up a sister ltd company and often transfer loans to the other ltd company. These loans often get pinged back the same day, sometimes weekly.
I have currently just set up as two bank accounts one being the main current account and another as just the name of the other company account, literally registering as loan’s between the companies.
I would appreciate any advice regarding if this is ok or wether I should set this up using DLA
OK, then in each company you should have a balance sheet account named for the other company e.g. in Quickfile you should have a balance sheet account named “Company 2 inter-company account”, and in Sage you should have a balance sheet account named “Company 1 inter-company account”. The important thing to check every so often is that the balances match (i.e. are for the same amount (one will be a credit balance and the other will be a debit balance).
This is assuming that you own (are 100% shareholder of) both companies.
You shouldn’t need to use the DLA in this instance, as the DLA is for your transactions with the company as an individual.
Thank you that helps, so I’ll leave it as it is as the figure do all match up, just wanted to check I had done it correctly, thanks again for your advice much appreciated.