I have the Monday morning feeling and have a blank mind (Yes this is usual for me)!
I have a client who has paid some rent and other set up costs prior to business opening and paid them out of his personal account, they are a LTD company, I am assuming I need to post these to the DLA account? Then eventually when they make some money he can repay himself back? Its not a huge sum of money but eventually he will want to be reimbursed.
For small expenses that he has used his own cash on recently I have set him up as a Supplier and labelled it expenses with his name by the side and inputted these under the supplier account and posted to the relevant expense accounts in the COA.
Just having one of those blank days today and have so much to do can't think straight!
Not sure what you are asking? But what you are doing sounds ok?
My way of tackling this is to set up a bank account called "Bank of Director". I then make bank payments out of this account, for personally paid items. At the end of each month I journal the balance to the DLA. The director can then withdraw this balance from the actual bank account, and when he does, it can be the normal bank payment to the DLA.
I do it this way because Directors don't always take the money out.. or they take round sums, which can make a mess of suppliers. It also avoids having a supplier balance at the year end that needs moving to the DLA anyway.
You can add the items he paid prior to the business opening to the supplier account, and tell him to write himself a cheque for the balance, then clear it - assuming the money is in the bank for him to take it.
As usual with Sage, all roads lead the to the same place, its just deciding which way is best for you to keep it tidy!
Thanks for your replies, I was having a bad morning and couldn't decide what to do!
Most of the stuff I have posted to the DLA but the small expenses I have done a suppliers account and told him to pay it exactly what the balance is to keep it neat and tidy. I will advise him how much to pay etc anyway so I can keep a handle on it.
Michelle - I hadn't thought about doing it that way, but that would work also, I use QB, but I can translate it from Sage so not a problem if you say it in Sage terms.
Lastly, he's not actually drawing a wage at the moment although to use up his personal allowance I am doing his Payroll (its only him at the mo), I was just going to put it in the DLA for the moment as no monies have been drawn out yet and probably won't for a while, then I was going to let the accountant sort it out at the end of the year. Is it okay to do it this way? The accountant told me to do his payroll.
