[CARPET KNIGHTS]

How do you enter personal drawings from the business on accounts software?

Cheers Goron

[carpetguy]

I think the term only applies to a limited business............it's in our other business, but in the c/c side personal drawings are taxable income from the net profit................I think 

[CARPET KNIGHTS]

What i mean is if i go and buy a new whatsamecalled for my machine from Hydramaster then that is a business expense and is entered into purchases as normal but if i went to Tesco and bought myself a crate of lager on the business account how do i enter that into the software and to differentiate it from the business expenses?

I Hate numbers!

Cheers Goron

[Shaun_Ashmore]

Put it down as an expense and then at your year end tell your accountant what you have done he will deduct the purchase from your profit and loss account or he will call it personal drawings like wages.

The thing about book keeping is it is easy if you don't think too hard and complicate the issue, at the end of the day it is only a glorified diary or log.

Shaun

[John Kelly]

You just enter the amount used, in your outgoings (expenses) as drawings.

[carpetguy]

Anything you purchase, which will be used as part of your business, is an expense and can be listed as a specific expense ( fuel ) or sundries.

The cost you quote ( presumably joking ) could well be justifiable in certain situations, ( team of workers in extreme heat / dusty atmosphere ), etc.

If you claim for something and have a ligitimate receipt, with explanation, for accountant, it will either be accepted, or rejected,

If you can't find a suitable heading, put the receipt in an envelope, headed " sundries "and give it to your accountant at the end of your financial year.

In this business, you should be claiming for all workwear purchases and laundry costs, but few do!

[Tony_Browning]

I was under the impression that workwear couldn't be claimed for unless it was some kind of protective Clothing or specialised items such as fluorescent jackets, protective overalls and steel toe-cap boots, and must be from a acknowledged work-wear retailer.

 

[matt jones]

I was also told this by my accountant, don't think they allow this anymore unless for the reasons tony gave.
matt

[carpetguy]

must be necessary for and used exclusively for the work...........so our carers uniforms would qualify, but so should safety footwear, gloves, eye protectors....

You have nothing to lose by claiming.

Unaware of any rules about suppliers, which sounds nonsensical. Most of the uniforms / protective clothing, etc, we buy, comes from places like Makro or Building supply merchants.

[Fox]

If you were buying something for yourself with the business money and wanted to enter it into the accounts I would put it in the same catagory as you put your wages in, so you just treat it like a cash payment to yourself it doesn't matter that it was paid for in the form of chq or card.  You don't even need the recipt if it was definately a personal purchase as you can't claim any VAT or tax releif back.

If you are a limited company you should have a directors loan account and drawings account, if the company owes you money allocate it to the loan account if not allocate it to the drawings account marked as sundry/personal expense or whatever your accounts package states, you can create new nominal ledgers if you want a specific area for it to fall under just make sure you create it under purchases and not sales.

Fox