I've just set up a business and brought Sage Instant Accounts Plus. I'm trying to get up to speed with the basic tasks and I have a problem and wondered if anyone can help.
How do you record a directors investment into the main bank account?
There has been a few investment transactions that I need to record and I can't find any information on how to capture this data.
Look forward to peoples comments!!! :)
Thanks
Paul
Replies (9)
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Directors Loan
Personally, I'd set up another Bank Account and call it Directors Loan - you can then just transfer the money from the DLA to the Bank Account. It is also useful if the director purchases something for the company from their own pocket as the payment can then be made directly from the DLA.
John
DLA
Just enter a bank transfer (so go to Bank -> Transfer) and you'd transfer money from the DLA to the Current Bank Account - you can do this as often as you want.
John
DLA
Ah OK I'll try that. There won't be any money in the DLA as I'm not sure how to add funds to a account, but I suppose it won't matter and will just go to a negative.
Will this cause problems down the line?
Cheers!
Let's suppose you've put £1000 into the business, you'd do a transfer from the DLA to the Bank - this will show the £1000 in the bank as an asset and, as the company owes you the money, it will show the DLA as a liability.
John
Buying
I am a layman in these matters and found the advice helpful.
Paul, one thing though: "I brought Sage Accounts to get off on the right foot."
BROUGHT = Past tense of "To Bring".
BOUGHT = Past tense of "To Buy"
Please talk to someone before it gets to late
Do you even have a company? You call yourself a director and everyone else since has assumed that you are but you would not be the first to call yourself a director when you were not.
Did you trade as a sole trader beforehand? If so have you transferred goodwill into the company? If not why not? (NB not saying you should have, just that you should know why you have done what you have done)
Are you aware of the VAT threshold?
Are you drawing a salary? Has the company registered for PAYE?
Do you have other income?
DO NOT:
buy a cartake a lease on a propertybuy a franchise
without getting advice. These things can have tax consequences that cannot be undone.
Chris Smail