I started my business a few months ago and changed my mobile phone to be paid from my business bank account. I didn’t really think about the fact that the bill isn’t in the business name and so can’t be a business expense - whoops! (I have just set up a business mobile phone number so am all set going forward…)
I want to rectify this error and balance the books again but am confused as to the best way to do so. At the moment I have 4 transactions paid by the business and would like to cancel them off and refund the business for the full balance.
Any tips on the best way to do this and ensure the accounts are correct would be greatly appreciated.
Kind regards, Thomas
Are you self employed or Ltd? If the former there’s no reason why you can’t claim the business proportion of your phone use as an expense, you can’t claim personal use though. I’d talk to a real accountant if you want to be sure.
As a sole trader you can pay your personal purchases from the business account, just tag the amounts as a transfer to drawings.
Hi, I am set up as a limited company. I am aware I can apportion part of my bill used for business calls but am happy to let this go and just start from now with a dedicated phone line.
Its the balancing of the books and bank account I need to get sorted out.
I’m afraid I don’t know what is allowed and what isn’t for a limited company, hopefully someone else can advise.
You may be better either asking your accountant, or trying an accounting based forum. There are a few accountants on here, but more non-accountants.
Try here: http://www.accountingweb.co.uk/
OK. Many thanks for your input guys, much appreciated!