Logging payments to the credit card balance

Accounting
1

I am a handyman (sole Trader) and new to this. I have a Tide account for customer payments, and I am using my personal credit card for materials.

I am logging sales and purchases in QuickFile, logging a payment to the credit card. For simplicity, I transfer funds from my Tide account to my personal account as a drawing, and pay the mixed credit card balance from there.

The question is, how do I log a payment to the credit card account shown in Quickfile to get the balance down?

Using a bank feed would display incorrect numbers, as there are other non-business purchases on the credit card.

Many thanks

2

Hi @The-man-who-can

You would have two bank accounts set up in QuickFile -

  1. Your Tide current account

  2. A loan account for proprietor’s drawings (or similar - you can create a separate account specifically for the credit card if you prefer).

When you buy something for the business out of your own funds, you would mark the invoice as paid from this drawings account.

Then, when the business pays you back (which can be a transfer to you, or directly to the credit card provider), it’s tagged as a bank transfer to the proprietor’s drawings account.

You end up with something like this -

Proprietor’s drawings account (or another account if you prefer)

Description Money In Money Out Balance Tagged
Payment for materials - 100.00 -100.00 Tagged to purchase invoice
Another payment out - 25.00 -125.00 Tagged to purchase invoice
Repayment 125.00 - 0.00 Tagged as transfer from current account

Business current account

Description Money In Money Out Tagged
Repayment - 125.00 Tagged as transfer to the loan account above

Hope that helps