Some basic questions about accounting

Accounting
1

Hello,

I have just started my company and my accounting knowledge is zero. I would like to learn the answers to some accounting questions that can be very simple. I hope you can help me.

  • 1- Can I spend with my company card as I wish? Can I use my company card while making personal expenses?

  • 2- Can I add all these expenses I make from my card as company expenses? If no, which expenses will I add as company expenses? Is there a list of this?

  • 3- I work from home. I will buy a computer with my personal card. I will print the invoice for the company. Can I add this computer expenditure as a company expense? Because I will use this computer for my business.

  • 4- Can I add a non-English invoice as a company expense?

  • 5- Can I add the expenses I made outside the UK a company expense?

  • 6- I donate 10% of the income of my project with my company card. Can I add this donation as a company expense?

  • 7- I receive bulk orders on my e-commerce website. These accumulate in my stripe account and after 1 week I receive payment in bulk. How should I prepare the invoice? That is, I receive 20 orders but 1 stripe payment comes. Do I invoice for 1 stripe or do I invoice for each of the 20 orders? If I invoice 20 people individually, I see a single stripe payment in QuickFile.

  • 8- Is there a time limit for preparing invoices for all orders? Can I prepare an invoice for an order I buy now after 4 months?

Thanks in advance.

2

Hello @minimative

The QuickFile support team are not registered accountants and most of your queries should be directed to your accountant for professional tailored advice.

We can advise you on how to process various transactions in QuickFile.

I will leave this thread open as there are some accountants who use the forum who may answer your queries

1 Like
3

I agree with the advice to employ an accountant (but then I am an accountant so I would say that!).

Some general responses to your questions:

  1. Any personal spend on your company card will be treated as if the company had lent you money (a Director’s Loan Account). This will have to be repaid at some point in the future so is not free money. Also the tax consequences of not repaying can be quite severe. It’s best to get into the habit of separating personal and company spend. It will also make your accountant’s bills cheaper!

  1. Company expenses have to be wholly and exclusively for the purposes of the business. There is loads of advice online: a good place to start is: Expenses if you're self-employed: Overview - GOV.UK

  2. In short yes, provided you use it 100% for the business

  3. Yes, but an English translation attached to the original would be good in case HMRC ever wanted to review that invoice

  4. Yes, subject to the guidance outlined in 2 above

  5. More specific details would be required before deciding whether the donation is allowable

  6. This is too complicated for this forum, in summary you should be setting Stripe up as a bank account in Quickfile (with the automatic bank feeds), and coding the income / expenses from there.

  7. There’s no (reasonable) limit, but extra work will have to be performed at year end to ensure that the figures are accurate.

As stated above, investment in an accountant now will help in the long term, especially as you sound to have quite a complicated business.

Also, don’t forget that once your turnover approaches £90,000 per year, you may have to register for VAT.

1 Like
4

Very valuable information. I appreciate it.