Hi Solar Accounts,

Just getting to grips with the software but so far so good!

I am the sole director of my business - When I purchase items using my personal finances, do I record these using Money Paid Out or a General Transaction?

Also I'm confused as to whether or not the transaction is between the Directors Loan Account and the Cheque Account or one of the Expense accounts.

Say I had expenses totalling £100 - I've created a General Transaction from the DLA to Uncategorised Expenses for that value. However, when I've paid myself back I've created a Money Paid Out from the Cheque Account to the DLA - is this correct?

Many thanks in advance,

Matt

Hi Matt,

The Money Paid Out window (with the Type set to 'General Payment') is really just an enhanced version of the General Transaction window. If you are registered for VAT or want to keep track of the supplier then you should record a Money Paid Out transaction, otherwise just record a General Transaction.

The transaction should only include the 'Cheque Account' if the money has actually come out of the account. The transactions you describe are correct: If you pay a business expense with your personal funds you can record a General Transaction from the Directors Loan Account to Uncategorised Expenses. And when the company 'pays you back' you can record a Money Paid Out transaction from the Cheque Account to the Directors Loan Account.

Regards,

Matt

I do this by raising a monthly 'purchase invoice' to myself
You can describe and categorise each expense correctly. Including travel expenses, VAT etc and then pay yourself by 'recording an expense' against the purchase invoice

It seems to work