Suspense Accounts and personal transactions

Accounting
1

Hi All,

RE: Suspense Accounts

Although I have an ordinary business current account, I also have a personal credit card and a Paypal account. For a lot of smaller items, ie, petrol, I pay via the credit card. For online purchases, I pay with paypal. To track the business transactions on these accounts, I have setup two accounts in QF - Paypal & Credit Card. To make life easier, I use a bank feed to update these two accounts. All works perfectly and I can tag the business transactions. Of course, this leaves many transactions untagged because they are not business expenses and this results in a hugh suspense account balance. Should I just:

  1. Delete all Credit Card and Paypal entries not related to business transactions?

  2. Setup an account “PRIVATE” and transfer all non business entries into here?

Cheers

Gary

2

Hi @GaryWilliams

I think deleting your personal transactions is likely to be the better way. Although it would mean your balance is going to be different from your actual bank statement, it does mean that none of your personal transactions show up on your balance sheet (9998 Suspense Account also shows up there).

You could alternatively tag them to your drawings account, so they wouldn’t be sat in the suspense account.

Long term however, I recommend looking at a dedicated business account, just to help things neater and make life a bit easier with bookkeeping too.

Hope that helps!