Tagging money put in to fund business

Set up the Free version of quickfile a couple of days ago

Sole Proprietor - Furnished Holiday Let

Uploaded my bank statements in CSV format and I am in the process of tagging.

Question:

Several times I have had to transfer money into the account to give me sufficient cashflow for expenses that were going out of the business.

These amounts have not been tagged yet or categorised, how do I handle these entries so that they do not show as income?

I am thinking that it may have something to do with proprietor entry?

Thank you for your help

Generally the proprietor drawings account is what you would use to track movement of funds between “you” and “your business” (quote marks because as a sole trader the two are legally the same entity) - if you take money out of the business for personal al use that is a transfer from the current account to the drawings account, if you put money into the business that is a transfer back the other way. If you use the business account to pay for a personal purchase then that’s the same as taking money out for personal use - so again it’s a transfer to drawings. Paying for business purchases with personal funds you would make the purchase as having been paid from the drawings account instead of the current account.

All that said, if you’re putting money in that you do not expect to draw back out during this year then it might make more sense to tag it as “something not on the list” and using the “capital introduced” nominal code.

Thank you Ian that worked fine as I do not anticipate it being taken out again just yet

Have a good New Year
Regards - Mel

This topic was automatically closed 14 days after the last reply. New replies are no longer allowed.