Hi
When I started my business I did not have a business bank account and just paid all expenses on my personal credit card(s) whilst in R&D mode. When I set up QuickBooks I created spreadsheets to upload all these expenses to the Directors Loan account. I have exported this data from QuickBooks and am loading it into the Directors Loan account in QuickFile. I have uploaded the data successfully and tagged (+ retagged) the data so the Trial Balance in Quickbooks matches the Trial Balance in Quickfile.
My question is with regards to the invoices it creates to match the payment against. I’m not quite sure why the system does this and whether or not it’s an accounting consideration (i.e. you have to have an invoice to record the payment against) or whether what I’m doing is a bit overkill.
As I don’t have (nor really want) a lot of dummy invoices which are effectively receipts, what’s the best way to record expenses such as ‘Costa / £3.95 / Tag=Client Entertainiment’ or ‘O2 / £20 / Tag=PAYG Topup’
I have quite a lot of transactions going back a good while to enter. Is there an automatic way of loading just receipts and assigning them to the Director’s loan account (which is, in effect a petty cash account which gets cleared down now and then) or is there a better way of doing this - for example via the Bank Statement import as I’ve been doing then categorising them, but without creating a dummy invoice to mimic the physical paper receipt?
What’s best practice in thsi example?
As I’m starting from scratch I really want to get the data as clean and accurate as possible.
Thanks
Chris