What sort of Bank Account should I create in QF?

Accounting
1

Hello

What sort of Bank Account should I create in QuickFile?

What happened:

  1. When I first started my (limited) business, I was given a cheque for several thousand pounds by an angel investor. At that point I had no company bank account yet, so he wrote the cheque out to my personal name.

  2. I then cashed the cheque putting it into my current account and because my bank didn’t want to give me another current account, I put it into a spare “Instant Saver” account that I had, in order to keep the money separate.

  3. I then discovered that although I could change the name of the account, I couldn’t transfer money (nor buy anything) directly out of this Instant Saver account. So I had to do lots of (relatively small) transactions via my personal current account.

  4. Separately, before the company account was ready for us, I had also (in effect) lent the company some of my personal money by buying things for the company using my personal current account.

So my question is: What type of bank account should I create in QuickFile for the “Instant Saver” bank account?

e.g. Should I create a Loan Account or a Cash Account?

With thanks

J

2

Hello @JohnSmith1169

I would imagen this should all be in the Directors Loan account as that way you get a total of what the business owes the director.

If you are unsure you could always check with your accountant for professional tailored advice.

3

Blockquote

The problem is that the account in question (the Instant Saver account) was being used as a company bank account. The whole purpose of it was to manage the companies money and to keep its management separate from my own person money.

Either way is it possible to set up more than one Directors Loan accounts and within QuickFile to track financial transactions - i.e. the movement of money - between such bank accounts?

With thanks

J

4

Hello J

Either way is it possible to set up more than one Directors Loan accounts and within QuickFile

It is, this is usually done when there is more than one director.

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