Personal Entries

Accounting
1

I’m still having problems with personal entries. I make some business purchases, ie, petrol, I use my personal Mastercard. To keep track of all transactions, I use bank feeds to copy the Mastercard transactions into my QF account “Mastercard”. Reconciling business purchases is easy. For my personal purchases, I transfer them to my “Partner Drawings” as previously advised. This upsets the Balance Sheet. What ‘account’ can I setup to hold the personal items that will not adversly affect the business reporting?

Cheers

Gary

2

Hi @GaryWilliams

Any entries on your account will form part of the accounts - there isn’t a way to exclude them as such.

If they are of no relevance to your business accounts you could simply delete them, or tag them to another nominal (e.g. create one for “Personal expenses”) and raise it with your accountant at year end.

3

OK, that makes sense. Do I create this new account “Personal Expenses” in the General Bank Account section?

4

You could do that, or use the existing proprietors account. It’s just the matter of keeping everything separate from your business expenses. You could create another bank account that would sit along side the drawings account, and keep one for personally paid business expenses, and one for personal expenses (if that makes sense?)

5

A bit confused now. Please just tell me what to do that is good accountancy practice. Is this acceptable?

  1. The existing Proprietor Drawings account is for monies out of the business for the proprieter to pay his mortgage, bills, etc.

  2. I create a new account “Personal Expenses” in the General Bank Account section to hold personal transactions from the personal current account, MasterCard, etc?

6

I think to get a “good accounting practice” take on this, you may be best to run it past your own accountant (I’m not one). Personally, I would avoid mixing any personal transactions in the accounts unless they are business related (e.g. buying something using my personal funds). I’ve included a few links below from various topics where this has come up before on the forum, but ultimately, your accountant is likely to be better placed to advise on your exact situation.

As long as your profit and loss report is accurate, this is likely to be the most important part of your account, as there is no legal separation between sole traders (the individual) and the sole trader business.

7

Thanks. In your support area, do you have any accountants who could advise on purely accountancy issues? I imagine that many QF users have this exact problem so a simple set of idiots instructions would be very helpful.

8

There are 2 main ways to contact accountants familiar with QuickFile.

The best way would be to do it through your account itself. When you log in and viewing your dashboard, you should notice an option in the top right - “Need help with your accounting?”

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If you select the “Get a quotation for bookkeeping” option, you will see a few options and have the chance to describe your query. This is then sent to a panel of accountants.

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The other option would be to check out the QuickFile accountant directory, and contact an accountant through there.
https://accountants.quickfile.co.uk/