Initial outlay before starting QuickFile

Accounting
1

Hi,
I’m new to QuickFile, I have imported all bank statements etc, how do I account for my initial outlay before I started my business!?
Thanks

2

Hi @Janeya

Welcome to QuickFile!

Are you a sole trader or a limited company? If it’s the latter, were these expenses prior to you incorporating the company?

3

Hi Matthew,
Sole trader,yes it was before I incorporated the company!
Thanks
Jane

5

Which is it? Are you a sole trader or have you incorporated a company?

If you’re a sole trader then you can just put the purchases through as normal, paid from the proprietor drawings account - as a sole trader there’s no legal separation between you and the business and no “incorporation date” as such.

If your business is a limited company (even if you’re the sole director) then the legal entity that is the company didn’t exist prior to the date of incorporation, so it can’t have incurred any expenses before that date. If you bought any items for the business prior to the date of incorporation then it was you who bought them, not the company, and you will have to actively sell those items to the company at market value once the company exists.

6

Ok, no worries I am just a sole trader…
ok thanks for that…
Jane

7

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