Hi Pete, I am looking for advice on business expense records. I have a bank account for money going into my business but as I am a startup I have not being paying for business goods etc. out of this account as there is not much in it. I have being paying for goods for my business in order to make a profit via Paypal which has my personal bank account attached to it. To record an expense do I add Paypal as a credit card and put my personal account number etc. in in and put the balance as zero?
Hi. Are you a sole trader or limited company.
sole trader in partnership with my husband
Ok. So you are the business. It doesn't really matter where or what sits where.
At the end of the year. It's all income is taxed and business expenses are deducted off your tax.
I don't really understand your setup.
But it's always ALWAYS good to keep your personal accounts and business accounts separate 100%.
Ways you can do this.
Create a main bank account for the company.
Create a bank account called PayPal.
Create a bank account called Petty Cash do a bank transfer from the main to Petty Cash bank account. Then when you buy stuff in a shop with cash just create a Bill and Mark it as paid with the bank account Petty Cash.
Does that make sense?
I completely understand keeping business & personal spending separate. We have only just started up and as my personal account is connected to Paypal and we don't have enough money in the business account to spend on the things we need for the business I just purchased through Paypal and now I am only just thinking about recording the expenses (I know, a bit late). So, I have a main bank account for the company, Permanent TSB Current Account, which shows on Invoices. For creating a Paypal Account - will I create it as a Bank Account Type or Credit Card Type? I don't know my Paypal Account number, I think this is just internally for them and not given to account holders. For Petty Cash, do I need to open a new bank account or just use my personal one. Sorry for all the questions.
Never say sorry. Setting up a company is a great thing.
How your doing it now is now everyone starts off.
Remember you are the business so it technically doesn't matter who pays what. So your 100%.
But, going forward it's easier to manage the other way. That's what we're her for right.
Thank you, will I put the account details from my personal account into the paypal bank account I am creating in bullet?
Sure. That PayPal account is fine. Do you use it for personal purchases?
well I haven't in a long time & I do intend on connecting it to a the bank account I use for business in the near future, once I get some money flowing through the business account.
Thanks a million for your advice
Is your receipts app only available for the iphone?
Sorry. They're both offline for re developement.
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