Accounting for Personal Expenses in QuickBooks UK 2020 - from a Certified Trainer!
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- เผยแพร่เมื่อ 12 ก.ย. 2024
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My name is Aaron Patrick, as an official Intuit QuickBooks Certified Trainer, I thought it would be good for me to give you a little tour into the world of QuickBooks Online!
In this series, we will start at the basics and work our way up to the more complicated areas for QuickBooks.
I am a Chartered Accountant, with accountancy practise that has 200+ licences with QuickBooks; my aim is to pass my knowledge onto you guys! No matter if you are an accountant, your self or a QuickBooks Online user, I am sure I can help you on your Journey!
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It was a pleasure to do this video, don't forget to like and subscribe :D
Aaron, Thank you so much for answering this question in so much detail. I was really struggling with how to solve this problem. You are a star!
Glad it helped! Do let me know if any other topics you would like me to tackle :D
I really enjoy watching your videos Aaron. Perhaps you could show us your dog one time. We hear him or her on most videos. Would love to see him or her. Thank you, Teresa
I am sure I can get mulberry on one of the videos :-)
Thanks for this - it's made my life so much easier.
Glad it helped!
Great video, thanks Aaron. My DLA has a negative value, meaning my company owes me money. How do I go about reimbursing myself the money owed, and how would I record it in QBO. Would it be a bank transfer from the business to my personal account, and then record the transfer as a "Transfer"? Many thanks.
Exactly - that way you would be updating the balance of the DLA account and aiming for Nil 👍
Thanks for this ...
My pleasure
So helpful. Thank you! 😊
You're so welcome!
Thank you this is really helpful.
Glad it was helpful!
How do you zero/close out the drawings account at the end of the financial year?
You can journal out to opening capital & reserves 👍
When creating the drawing account for a sole trader, is this where you would put eBay sales that are personal and have not bought to resell ? Just sold a few of my own items and not sure where to put these thanks !
ewan laing absolutely, stick anything personal in or out to Drawings
Another accountant you may come across is Capital Introduce which is essentially the opposite of drawings, but to keep this simple use drawings for items like this
Thankyou so much for this Aaron. I have not long opened a business and while i was waiting for my business account to open , i purchased a lot of things for the business i.e tools work wear some stock etc from my own personal account. Soooo i can add this to quickbooks online using your method? also can i reimburse myself from the company after entering all the purchases i have made. is this easy to reimburse? do i just use the transfer option back to my own personal acc and is this all compliant for when i do my end of year filing etc? . Thanks
Sorry for missing this Nigel - you can use the transfer, the key is to have the personal account as a cash account so that you can interact with it :D
@@TheQuickBooksChap don't worry and thankyou Aaron ...love the video btw
So in self employed, when you click on personal where does that make it go?
I'm having difficulty working out exactly how much have I made that month & wondering if I am doing everything right?
Personal will ensure it’s not included in the tax calculations 👍
Hey can you do the above on a quick books app. I'm a new sole trader and used my card for personal and now its flashing up in the app.
yeah app works perfectly 👍
Thanks Aaron very helpful have set up directors account as a bank account - when I start making payments from company bank account to directors account how do I record them ? do I do a transfer from bank to directors a/c ? Thanks for your help
Transfer works well, keeps it away from the VAT return if you are VAT registered 👍
My accountant has set up my Directors Loan account as a Current Liabilities Account rather than cash at bank and in hand. I purchased some items with my own personal money for the company, how do I record this in QuickBooks? How do I record my expenses when its like this?
Make the directors loan account a cash account In chart of accounts
Hi Aaron,
I'm using QBO and I'm self-employed. I've paid myself by withdrawing cash at the ATM from my business bank account. In QBO on Banking, I can see the withdrawal from the account and I need to categorise it correctly. Would this use of a Drawings account be applicable for my needs?
Thanks and sorry for the dumb question, I'm new to this.
Would also like to know this. Great question :)
@@m.allmark I guess that we'll never know, I don't think Aaron saw this.
I've set it up this way and it does work, but whether it's correct or not, or makes sense to my accountant at the end of the year I couldn't say.
@@roverboy01 as a sole trader my accountant said yes owners drawings is the category. Don't put "wages" as that's an allowance which is for ltd companies really
@@m.allmark that's what I thought as well. Thanks.
I spoke to the QB online chat advisor and they were telling me to use the wages/salary option which I thought was wrong. In my mind wages are an expense to a business/company and should only be used for employees. So QB advise shouldn't be trusted.
QBSE you don't tend to have wages / salary - you would need to include these as drawings :D
Brilliant many thanks for this. I have a joint account setup that I am trying to reconcile. Just wondering is it possible to have sub or additional cash in hand accounts to categorise personal expenses further (such as mortgage payments, groceries, clothing bank charges etc?) or would you just keep things simple & record things in memos? Quickbooks has so many categories that I will never use, but so many I could do with! 😁 At the moment I have a lot classified as Other Income (such as gf's transfers for bills/mortgage) that look quite scarily big on a report! Would separate accounts for these be advisable?
Hi, easy way to sort this is just to categories all personal expenses against a Drawings account and make this a cash account - if you just ignore / exclude you won't be able to reconcile your bank account
@@TheQuickBooksChap Brilliant many thanks, also came across tags which has made that a bit simpler too.
So would the money I put into the business be showing as a Payment or a deposit in my Directors loan account
It will be shown as the directors loan becoming more in your favour and as you are providing money into the business 👍
Hi do I have to have a separate QB subscription? I currently only have a QB subscription for my business but was wondering if I could incorporate my personal finances..
Which ever works best for you, for personal QB self employed might be a consideration
Thanks its a great video. what if i were to add personal money to my business account to pa for a course that there wasn't exisitng funds for. This incoming money obviously isn't income. how do i categorise that?
Hi Oliver - Same as when you make expenses - include this against your Drawings / Directors Loan account :D
How to I enter a tax refund received from HMRC
It depends on which taxes its for, I would put this against its own account - Tax Refund if unsure, but you need to match it where you assigned the payment - unless its a Grant for Covid which you will need to follow my Covid19. Grants video - many thanks Aaron