Hi All,I'm in desperate need for some help and advice.I'm currently studying bookkeeping and I was asked by some friends to help them with this, so I apologize if my questions will look dumb as I am still learning.They are both self employed-sole trader (it's a couple, she is a cleaner and he is a chef).Nothing wrong with that so far.The problem is that they are using from time to time each others debit card so I am unsure how to put this into Sage.He paid with her card for the fuel and she paid for her cleaning materials with his card,none of them has a business account only an ordinary account,is this ok?and the other thing is he is using his private car for business as well,so I think he should claim business mileage ..but I am stuck when it comes to enter into Sage the price he has paid to buy the car ...where do I put into Sage the price he has paid for the car and being a private car can I put the whole price he paid or just a percentage from its total cost ? any help would be much appreciated.many thanks in advance.Karla
Welcome to the forum. Are you currently registered for MLR? Who are your studying with, do they allow you to practice before you are qualified? These are important questions not only to keep you legal and above board, but to stop you from taking on work you are not able to do and getting yourself in a bit of a mess.
Personally I would advise you to stick to the books, get your qualifications, practice certificate and insurance before undertaking any work, especially for friends.
Hi Kris. I'm self studying at the moment and I plan to register with ICB to take my exams..I'm aware that I have to register for MLR but I am only learning at the moment not working as a bookkeeper,so I don't intend to take clients on until I know what I am doing.I was just asked for help in this matter so it's more curiosity than anything else because I haven't come across such a subject until now hence my post.many thanks.Karla
In that case, if they are both sole traders, although it is better to have a separate business account for each there are really no great issues using a personal account for some purchases. For the transactions I would probably show it coming from a cash account, and then show a transaction from capital to cash. So I would: CR Capital DR Cash, CR Cash and DR cleaning materials for example.
With the fuel, I suppose a decision really needs to be made early on whether to claim a proportion of all vehicle expenses or the 45p per mile (if under VAT threshold).
Hope this helps, but if you need more clarification just ask.
From what I know he is not registered for VAT and the use of his car is split 70 private and 30 business...from what I've learned buying a car means Dr Fixed Assets and Cr Bank ..but when the use for business is only a percentage which way you think it 's best to go??
.I'm currently studying bookkeeping and I was asked by some friends to help them with this, so I apologize if my questions will look dumb as I am still learning.They are both self employed-sole trader (it's a couple, she is a cleaner and he is a chef).Nothing wrong with that so far.The problem is that they are using from time to time each others debit card so I am unsure how to put this into Sage.He paid with her card for the fuel and she paid for her cleaning materials with his card,none of them has a business account only an ordinary account,is this ok?and the other thing is he is using his private car for business as well,so I think he should claim business mileage ..but I am stuck when it comes to enter into Sage the price he has paid to buy the car ...where do I put into Sage the price he has paid for the car and being a private car can I put the whole price he paid or just a percentage from its total cost ? any help would be much appreciated.many thanks in advance.Karla
