I just wondered what the conventional wisdom is regard recording expenses incurred before a company is incorporated. I understand that HMRC wants them recorded as being made on the 1st day of incorporation,
But for accounting purposes is it ok to record them as one bulk figure, well maybe broken down into chunks that fit appropriate journals, rather than having to input each and every item into its individual journals. So for example, if you’ve spent £200 on 35 items of stationery, should we be listing them individually, or would it be acceptable to just add a journal entry for £200 in the respective journal?
But for accounting purposes is it ok to record them as one bulk figure, well maybe broken down into chunks that fit appropriate journals, rather than having to input each and every item into its individual journals. So for example, if you’ve spent £200 on 35 items of stationery, should we be listing them individually, or would it be acceptable to just add a journal entry for £200 in the respective journal?
I wouldn’t say it matters to much as long as the you have the backing information (receipts/invoices etc)
I just wondered what the conventional wisdom is regard recording expenses incurred before a company is incorporated. I understand that HMRC wants them recorded as being made on the 1st day of incorporation,
I would check with your accountant for professional tailored advice as we are not accountants nor bookkeepers.
It’s fine to make one entry for all your stationery and to group amounts together for each nominal code as long as you have the receipts to support the purchases. They are presumably a loan from the director on incorporation?