Hi,
I'm a new user and figuring out how best to set up Solar Accounts for my my small business.
I work from home so some of the expenses are shared between the business and myself - electricity, for example. I thought I'd worked out the best way to record these expenses - enter it as a "Money Paid Out" and in the "allocate to account" box, allocate half to "electricity" Account (expense) and half to "Owner's Drawings and Personal Use" Account (Equity).
But whilst browsing forum for help with another matter, I came across this answer:
http://www.solaraccounts.co.uk/forum/topic.php?TopicId=410&Posts=1
which seems to advise recording it as 2 separate transactions.
Can anyone advise please? Thank you.
Hi Steve,
If you are registered for VAT you will need to split the payment into separate transactions. In this way you can ensure the 'personal use' component doesn't affect your VAT return.
If you aren't registered for VAT you can record a single Money Paid Out allocated to two accounts as you describe.
Regards,
