I would like to record expenses paid for from my personal account. When adding a transaction within the directors loan account I tag it to the relevant account eg ‘client A account’, but then it shows as incoming to that account. Doing the opposite by creating the transaction in the client account shows as incoming to the dir loan account whichis also wrong as it reduces the debt owed to the director?
So I created a new purchase order and selected ‘paid from… dir loan’. The problem is then, is that it’s not going to show as an expense of Client A in the reports. Would appreciate if anyone could explain the best way to do this, thanks.
How do you normally deal with such expenses when you’re paying for them out of the company bank account? Whatever you do there, you’d do exactly the same for expenses paid from your personal funds but use the director’s loan account wherever you would normally use the current account.
Please can you clarify. Are you trying to record business expenses that you have paid for out of your personal bank account? I assume that you do not have your personal bank account set up as a bank account within Quickfile. If so, then the director’s loan account is the running balance of what the business owes you as an individual.
When you add an expense, the transaction should be:
Dr Expense in the p&l (this is a a cost)
Cr Director’s Loan Account
So the director’s loan account should go up (the company now owes you more money).
The tagging should take place on the expense in the p&l line (as I assume you are trying to record how much you have spent per client).
This depends what you consider to be “up” - a credit entry on the nominal account representing a bank account shows in the bank statement view as money out, not in, so if the company owes money to you as a director then the director’s loan bank account will appear to be overdrawn. This is correct, because when the company pays you back then that is money moving out of the company bank account and into the DL account.
More generally, the clearest way to record which expenses relate to which client in QuickFile is probably to use the project tagging system - create a tag for each client and you can apply that tag to any purchases that relate to that client regardless of which bank account they were paid from (the company current account or the DL account if you paid using personal funds). If you also apply the same tag to that client’s sales invoices you can see an overall summary of all income and expenses on a client by client basis using the summary page for each project tag.