New business, expenses questions & move to dedicated business bank account

Accounting
1

Hi,

I’ve started a new business (sole trader electrician) and have a few questions with regards Quick File processes which also cross over into accounting. Any help appreciated.

  1. I have several receipts for tools and materials, how is best to differentiate them (?) given that tools are deemed an asset.

  2. I was trading from my personal account (very few transactions) and now have a dedicated business account. I want to add purchase receipts to QF and then transfer the funds as an expense back to my personal account (is this even needed? as i want to be sure these are correctly accounted for, for tax reasons) and to make my book keeping and process of working out Tax etc simple.

Also with the move to a dedicated account, and soon to be adding tagging, i want to ensure everything works properly.

Thank you in advance.
Benn

2

No every tool would be classes as an asset, it depends on materiality, any thing small amount you can use Tools as nominal in P&L

Material would go under direct expenses

You can do one journal for purchases from personal account
Dr Purchases
Cr Capital

3

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