Hi, lots of if's and but's....... but if there's an accountant, he/she would advise through which business these income streams would flow: limited company, partnership or sole trade.
For management purposes it's a good idea to be able to identify different sources of income, and I would use a separate code, depending on the software you're using.
It might simplify things if she can invoice separately from the partners.
Hope someone might be of more help to you. Tim
-- Edited by Don Tax on Saturday 17th of September 2011 09:53:49 AM
Thank you for the post. She is a limited company. I did think using seperate nominal codes was best as then at the end of month / quarter she can clearly see the amount made for each project etc.
Hi, Like Tony says has she already got an accountant that can advise you on wheres best to post it/set it up depending on her business? you could set up a new code for the commision in the 4000 range of sage, thats assuming you want the commission to show in the Sales range of Sage. Its difficult to suggest as we don't know her business and what the projects involve and how often they are invoiced.
Or is your client a new start up, if shes a new start up maybe ask her if an accountant is in place yet?
Regarding the salary, is she taken a salary or is she taken some of it in Dividends if the company is in profit? If shes taken it in Salary is her accountant doing her payroll?
Shaun may be the best one on here to talk about the salary part of it.
