I’m new to QuickFile and I’m confused as you’ll expect, but something that confuses me a lot is this :
When I create a new purchase and I log a payment … where do I say it’s payed from ? Current account or proprietor drawings ? The reason I’m asking this is because I’ve read that if you pay from your OWN bank account ( not a business account ) it should go thorugh the proprietor account … this is what confuses me, since I don’t have a business account, you can imagine that everything I pay I do it with my personal card , all the purchases that I do for my business comes out from my personal bank account, what is the best approach ?
You’re correct in what you say, and that personal expenses should be paid from the Proprietors account. However, in your situation there shouldn’t be any issues in using the current account for this purpose, as long as you know what’s business related and what isn’t.
I would recommend looking at a separate bank account - most banks offer a period of free banking to get you started. If you had a separate account, it helps for transparency and traceability should HMRC ever have any queries. Let me know if you’re interested in a separate bank account and I’ll happily point you in the right direction
The only other thing to consider is your personal transactions. Some users do include these in their records to get an accurate bank balance, but each entry does count towards your nominal ledger count. There’s no issue in excluding these unless they are business related.
Sorry that’s a bit long, but hopefully it all makes sense!
Thanks for your quick answer, it doesn’t matter how long an answer is … as long it makes me understand
This is what I do at the moment, I go to Current Account and upload a bank statemant and I delete all the transactions that doesn’t have to do with the business ! And that gives me a prety accurate figures !
Apreciate the help but I don’t believe I need a bank account, not at the moment anyway , I’m still a very little business
What about if I buy or pay something for the business on my personal credit card ? It would be the same procedure ? I mean: upload the credit card bank statemant and find the purchase for the business and tag it ?
If there is just the odd infrequent purchase then the easiest thing to do is just manually add the odd transaction to the credit card account, either from the account statement overview screen or automatically by marking the relevant purchase as paid from the credit card account.
Same goes for the current account in reality if there aren’t many business purchases, but it gets quite difficult to tie up anything odd and find mistakes or missed payments in or out and do any reconciling. I would strongly recommend that you use a business account for your business, no matter how small it is.
