What to do with private accounts?

Accounting
1

Hi,

Occassionaly I make business purchases, ie, petrol, via my personal current account or personal credit card. Now I have yodlee installed, all my business accounts and personal accounts are updated each day. This is good. I can keep an eye on all transactions for all accounts in one place - QuickFile. Any business transactions that go through my personal current account or personal credit card can be easily tagged as usual. What do I do with all the personal transactions that go through my personal current account and personal credit card account? I don’t want these showing up in my P&L and I don’t want a huge suspense account. Do I tag them to a project like “Personal Transactions”, or what?

Cheers

Gary

2

Hi Gary

If they are personal accounts (not business), then you can safely delete them.

If it’s a business account or card, then you may wish to tag them to the Proprietor’s Drawings Account or Director’s Loan Account (sole trader/partnership and limited company respectively). These would then need to be accounted for. For example, if you’re a sole trader and you take money out of the business account, the Proprietor’s Drawings Account would need to be cleared via a journal to reflect accurately on your accounts. With a Director’s Loan Account (DLA), you would need to pay the money back to balance it out.

Hope that helps, but please let us know if you need further help.