Business Expenses through payroll

Question asked by David Duncan 7 years ago

Stupid question as new to this. I currently submit my expenses through my company payroll (not with clear books). When i come to log the payroll amount I am currently breaking it down by expenses (collated together as COS, Travel etc), then salary, then dividend. I've just looked at the report and the expenses are showing on the income and expenditure columns and the bank balance is wildly inaccurate... am i doing something wrong? Is my accountant going to shout at me?!

1 Reply

Chris - why don't you ask your accountant now, and why isn't s/he showing you how to use the software?

Not 100% sure how you've made this work in the past but with CB you process your payroll, as payroll, and that fits the salary & PAYE figures into the bookkeeping and you use the Purchase>Expenses function to claim expenses that you've paid out on behalf of the business.

Dividends are created as debts to the shareholder(s) via the Tools>Dividend tool and you can chose how to pay that off, ie from the bank account or director's loan account.

Getting the bank transactions into the books is best done directly from bank feeds via Yodlee or by downloading your statements from internet banking and then uploading them to CB, this way, in theory, you bank can never be out as it's replicating what's in the actual bank account.

Sorry if that's a bit long winded but I wasn't sure what bit you weren't using or understanding.

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