Hi
I stumbled across Solar Accounts by accident but I'm finding it an easy, thorough package to use. I started as a self employed electrician in April, and paid for a lot of my startup costs on my personal credit card until I started generating income from customers/contractors. How should I record these so that I can repay myself, and mark them as an expense against income for tax purposes?

Thanks again for some really good software.

Hi Brian,

Thanks for your feedback - it's great to hear you like Solar Accounts!

If you pay for expenses using your personal funds, record a Money Paid Out transaction as normal except set the Paid From Account to 'Owners Drawings and Personal Use'. When your business pays you back, record a General Transaction from the 'Cheque Account' to the 'Owners Drawings and Personal Use' account.

Regards,

Thanks Mark
I haven't tried it yet, but if I show it as paid from the cheque account, won't this mean that the bank reconciliation will be wrong?

Hi Brian,

The Money Paid Out transaction when you record the expense should NOT be recorded as paid from the 'Cheque Account' - use the 'Owners Drawings and Personal Use' account instead.

I have assumed you are paid back by withdrawing funds from the business bank account - this is why the From Account in the General Transaction should be 'Cheque Account' (and the withdrawal will appear on your bank statement).

Regards,