Hi,

I am a potential new user of Solar Accounts and am very tempted by the simplicity of your product. However, there is one point that I would like your advice on, please. I am a self-employed freelancer with no employees and don't have a separate business bank account. So, all my business expenses and income come in and out of my personal bank account along with all the non-business expenditure.

Should I use Solar Accounts to record ALL my bank accounts transactions but just allocate the non-business payments as General Payments to myself (thus allowing me to balance the statement), or should record only the business transactions in the software? What do you advise?

Many thanks indeed,

John

Hello John,

Yes, you should use the 'Cheque Account' to track payments to and from your bank account. Where the payment is for a personal expense, use the 'Owners Drawings and Personal Use' account as described here:
http://www.solaraccounts.co.uk/help/how-to-record-non-business-payments.php

Cheers,

Hi Mark,

Thanks very much for your speedy response. I've just downloaded and am now playing with the software and, inevitably, have another question...

Quite often I pass on expenses directly to an employer when I have purchased materials or services on their behalf. So, when creating an invoice in Solar, how do I differentiate these expenses from the actual fee for my services in such a way that I may reconcile it with the expense (thus avoiding including it amongst the expenses that I am claiming against tax)? Also, is it possible to format the invoice to separate fees and expenses - although this isn't too much of a concern.

Many thanks,

Hi John,

No problem - glad to help!

A good approach in that situation is to create a new asset account called 'Client Expenses to be Reimbursed'. When you pay for such an expense, allocate to this account - this will increase its balance. When you invoice your client, add another invoice line using this account - this will decrease its balance.

You can add a blank line to separate sections of the invoice - right-click on the table and select 'Insert Line'. You can also have a line with only a description to act as a heading.

Cheers,

What about payments into the personal bank account which are not business receipts?

Hi James,

For personal funds paid into the bank account, record a General Transaction from 'Owners Drawings and Personal Use' to 'Cheque Account'.

Cheers