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Post Info TOPIC: How to treat personal expenses in Sage (for Limited companies)
Cheshire


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How to treat personal expenses in Sage (for Limited companies)
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Hello folks

I hope you can help with my query.

I am book-keeping for a Limited Company, They have put some of their personal bills - Gas, Water and Car Insurance (an the purchase of two sofas!!) - through the business Bank account. How would i account for these?  Would I be right in suggesting processing through the Bank and the Directors loan account and then letting the accountant decide at the end of the year what can actually be calculated as a proper business expense ( eg percentage of gas/water) at the end of the year?

Thanks for any help in advance

J biggrin

 



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Shamus


Forum Moderator & Expert

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Hi J,

welcome to the forum.

I concur with your treatment.

Dump to the DLA and then calculate the use of home allowance at period end.

kind regards,

Shaun.

p.s. for future reference this isn't really a Sage question. By specifying Sage it could have been missed as I for one generally don't even open those that say Sage in the title.

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Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
MarkS


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Hi J

Put to the directors loan account and either calculate a use of home adjustment at year end or leave a note for the accountant to say they should do such a calculation.

Regards

MarkS



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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
Cheshire


Master Book-keeper

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Thank you Shaun for the answer and the good tip about 'Sage'. I reckon this site could become my new best friend.

Regards

J



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Cheshire


Master Book-keeper

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Thank you Mark.  Ive just realised I have two Directors loans already in Long Term Liabs,  which are holding balances for dividends the Directors take out at regular intervals (again for the Accountant to sort at the end of the year).   Should I open another Directors loan (just for the bills)? Plus should I list this in short term Liabs or does that not really matter at this stage?

 

Thanks



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
MarkS


Expert

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Unless you know who the expenses relate to then would open up another directors loan account and put them to that and leave a note to the accountant to say what you have done.

Doesnt really matter if is under short or long term.  To be consistent with the other director loan balances i would put them to long term so all the director loan accounts are together.

Regards

MarkS



__________________

Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
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