Tag person items (sole trader) or delete?

Accounting
1

One of my quickfile accounts is a soletrader.

one of the bank acounts i use for business does have a few personal items in there.
that would be money received and purchases made.

these do not relate to my business.
do i just delete these because they are not related and so dont need to be there,
or do i tag them somehow as an ‘ignore’ tag?

a similar question also relates to separate personal acccounts.
in my personal bank acccount, there is a few business related purchase.
i would normally just tag receipts to Proprietor Drawings Account to keep it easy.
should i tag each one in each personal bank account?

thanks

2

Hi @adnw,

There was something very similar asked a little while ago you may find the thread answers your questions: How to mark personal drawings?

There are a number of ways in which you can do it and as you can see from the thread there are pros and cons for each.

1 Like
3

great thanks for the link

4

Never just delete transactions. Personal expenditure is tagged as proprietor drawings.

However, in order to accurately measure drawings when you have a personal bank account set up in quickfile. You also need to make sure that any personal money in, or balances are also tagged as proprietor drawings.

Otherwise you will have a overstated drawings figure on the balance sheet.