hi,
we would like some help from anybody that understands wave on how we enter wage transactions that dont actually get paid due to available money but instead go to a directors loan account
we currently enter like this.... wages and payroll as the category and the bank account as the account
and then for the credit to the dl account we do ..... directors drawings as the category and the directors loan account as the account.
we have been doing this for over a year, but this impacts on the bank account figures as of course we are entering transactions on an account that never actually happen.
so what is the correct way of doing this please?
thanks
Scott
Replies (2)
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Do your PAYE. This will give a payment due to the director. Instead of putting this transaction through the bank put it in to the directors loan account (the company owes the director). You will have to pay, pension, tax & NI in money though, so that goes through the bank.
It is a while since I used wave so I am not sure if this is possible. It can be done in other accounting software.
You should set up a bank account called DLA. Use this to pay the salary, then when you actually draw the money do a bank transfer to move it to the actual bank account.