My wife and I set up a new ltd company last year, buying jewellery from wholesalers and selling it retail online. I have just competed the 1st years book keeping and through my software i have noted a negative balance sheet due to the loans that I and my wife have made in the year. I do not really want to show that the company has a negative balance sheet so what can i do?
The balance sheet consists of stock valued at cost and in addition the few fixed assets purchased in the year and of course the directors loans
In terms of trading, as it was the 1st year of the company we spent a fortune on advertising, web design and subscriptions, courses, and generally setting the comany up - hence a loss of £2-3K
It will be a profitable business going forward, now in our 18th month of trading we are covering cost, so what to do with the 1st year accounts? is there something i can put on the balance sheet -- goodwill?
Regarding accountants, unfortunately i will be doing the 1st year accounts myself as we could not afford this year (i analyse business accounts for management purposes - but no tax knowledge) so any help greatly appreciated!