Questions & AnswersBank reconciliation as sole trader
thepalv asked 5 years ago

Hi guys
Just to check something with you – Am a sole trader and have three bank accounts linked up to Bullet. There is a main current account for the business which 90% of our purchases and all of our sales come in/out of.  There is also a savings account which we transferred a lump sum of capital into the business account from when setting up the business.  There is also our personal current account which we have made about 10% of purchases for the business from.   Usually these purchases are made in cash, which would have come out of the ATM, from our personal current account.  Things like stationery / phone credit and other small stuff.  So they don’t necessarily show up on a bank statement from the personal account anyway, but the cash came from that account, so when I create a Bill I choose that it came from the personal account.  Is this wrong?
 
When I do a bank rec, naturally there are loads of Money Outs from the personal account which do not match up with anything in Bullet, as they are not business related.  Can I just ignore them?  Is there a way to knock them off the list – when I chose Skip in Bank Rec, it goes around in a circle and they appear again.  
 
I presume I should have a petty cash system instead, but not sure how to do that with Bullet.  
Fool of a Took that I am, please help.