Hi,
I recently downloaded Solar software to evaluate prior to purchasing. As i am newly self employed i am a bit stuck. I spent a considerable amount of money on setting up the business using personal funds. I read a post dated 11th May 11 which states that it should be a Money Paid Out transaction as normal except set the Paid From Account to 'Owners Drawings and Personal Use'. When the business pays you back, record a General Transaction from the 'Cheque Account' to the 'Owners Drawings and Personal Use' account.
OK now i may have understood this wrong but i can't find 'Owners Drawings and Personal Use' anywhere on the accounts list.
Secondly, do i just total up all the invoices i have incurred and do one transaction when the company can pay me back in one hit OR do i have to do 1 transaction for every invoice??
Thank you in advance
Gerry
Hi Gerry,
Solar Accounts automatically creates the 'Owners Drawings and Personal Use' account if you initially set your Business Type to 'Individual (Self-Employed)'. It sounds like you did not choose this option at the beginning, so you will need to manually create the account: click menu File > New > Account. Set the Account Type to 'Equity' and the name to 'Owners Drawings and Personal Use'.
You can withdraw the money in one lump sum - you don't need to record it as several transactions.
Regards
Hi Mark,
Thanks for the quick reply. I should have mentioned that I recently when LTD hence why I'm not just self employed despite being a one man band LTD co.Does the make a difference?
Regards
Gerry
Hi Gerry
Yes in that case use the 'Directors Loan Account' instead of 'Owners Drawings and Personal Use'.
Regards
OK so let me get this straight i setup as a single transaction: click menu File > New > Money Paid Out. Set the Paid To field to 'Unknown Supplier which should be me?' and the Paid From Account to 'Directors Loan Account.
Should i add myself as a customer??? What do i do as I'm a bit stuck.
Regards
Gerry
Hi Gerry,
Record the transactions as a normal expense, except with the Paid From Account set to 'Directors Loan Account'. The Paid To field should be the name of the business who sold you the goods or services. If you don't need to keep track of the supplier details, set the Paid To field to 'Unknown Supplier'. You don't need to set yourself up as a customer or supplier.
Regards
OK understood. But the date that the actual transactions took place were prior to the business account was opened hence me using personal funds. Does this make a difference??
Hi Gerry,
No it doesn't matter when you opened the business bank account.
Regards
Hi
Merry Xmas for starters! I have managed to input all the invoices i personally incurred but paid from account set as Directors loan. Everything tallied up thankfully and the company has now paid me back as all my invoices have been paid to date. Do i need do anything further??
Regards
Gerry
Hi Gerry,
When the company pays you back record a General Transaction from the Cheque Account to the Directors Loan Account.
Regards
