Hi, Can anyone help, I have starting working for a new Limited company,
The director started trading in Jan and has paid various expenses for the business out of his personal account , No money has been put into the business as he is waiting for the Sales invoices raised to be paid, he is then going to settle the amounts owed to him. We use Sage is the best way around this to set up a Directors loan account as a Bank ?
I usually set the Directors Loan Account up as a Bank Acocunt if I am using Sage, as it's easy to post any payments direct from the Bank Sceen and also if the expenses are reimbused you can use the transfer button to transfer money from the buisness bank account to the Directors Loan account.
Thanks for your reply, do you use the directors loan account for all expenses , at my last company we set up the director in the suppliers ledger and paid expenses that way, was this incorrect ?
You could set each director as a seperate supplier too, that way you can post all invoices to each nominal and match to the receipt. You can then pay off the Directors supplier account via the (Bank Area) Directors Loan account if the money has not yet been paid or alternatively pay via the main bank if being reimbused via a bank payment.
