I'm planning to start trading as a new Ltd company from 1st September but I've had to pay for some subscription based services in advance of trading which I've paid for out of my own pocket. These subscriptions are services I'll be reselling to my clients. My question is What's the best way to enter these expenses/purchases into my accounts (planning to use Sage Instant)? I don't want the company to pay me for these 'yet' so I believe the best option is to introduce the expense I've incurred into a directors loan account but I could do with some advise from someone familiar with sage to advise how I go about doing this.
Secondly, If I put say £5000 into the ltd company bank account how do I then show that in the directors loan account to show that the company owes me that money?
Thanks
Mike
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These are very basic accounting questions. If you don't know the answer, I'd suggest you need professional help with your accounting. Get a bookkeeper.
Set up a notional bank account
Set up a bank account called "Due to Mike".
Post the payments for the subscriptions into this account.
Do a Bank Transfer to post the £5,000 from Due to Mike to the business bank account.
Sage will now show (as a negative balance) on the Due to Mike account what you are owed.