I am a sole trader and have a number of expenses imported from my business bank statements relating to use of home as an office. I want to tag those expenses as belonging to the nominal account “Use of home as office.” Is there a way of then applying a business percentage to all transactions in that nominal account without having to split each transaction individually?
For example, let’s say the total balance in the Use of home as office account is £5,000. If 20 per cent of the amount is business use, the business element would be £1,000. There would then be a balancing charge to the Drawings account for the other 80 per cent of the value of those transactions, ie, £4,000. What is actually shown as Use of home as office in the Profit & Loss account is £1,000. The other £4,000 of expenses in that category are in essence personal expenses and would automatically appear as drawings with a note, ‘Non-business portion of expenses in category, “Use of home as office”’ or words to that effect.
The above option could be available to other nominal accounts.
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