Using Director Loans Accounts
Question asked by Matthew Walker 4 years ago
I'm a bit confused using the Director Loans account, so I'm hoping someone can explain to me!
I've set up a Directors Loan account under Bank Accounts (note I've been using ClearBooks for about 8 months now, up until now everything just come out of the main back account).
Now Yodlee has brought across my transactions, which include my dividends, salary etc, for my business account. But I'm confused as to how I should reconcile this.
As far as I understand, any payments for me (salary, dividends, expenses, loan) should go:
Main Account > DLA > Personal Bank Account
How should I actually handle this? How do I reconcile the imported transactions from the Business Bank Account, and ensure that everything is still allocated to the correct codes?
Also, moving forward, if for example I am owed some expenses (which I am), what's the best way to put that into the DLA for me to withdraw later (and again reconcile the withdrawal)?
P.S. I also have an employee who withdraws a salary, dividends and expenses - should they have a similar account, even though they are not a Director?