I need to help on how to deal with receipts and some payments made to non business account, into a separate bank accounting. How would I treat this on sage. Would a loan account need to be created for this instead? I am just trying to work out the best bookkeeping treatment for these sort of transactions
I am the self employed person. I am just trying to keep a neat record on sage of my income and expenses. I do have a business bank account now but prior to opening the business back account. My invoices were paid into a separate bank account. The business bank account would have all my transactions so the account would reconcile. I dont see any point setting up my main bank account on sage because apart from those invoices money that came through that bank nothing else will go through it again. I guess I am just trying to work out how to treat paying the invoices on sage in regards to the invoices that were paid from a separate bank account
I usually rename one of the unused Sage bank accounts to "Bank of Owner" and use that for items paid/rec'd personally.
Then, each month:
I tot up the bank payments on this account, and journal the balance to Capital introduced.
I tot up the bank receipts on this account and journal those to drawings.
