Cash - Am I doing this right?

Question asked by Pete 6 years ago

This is what a previous bookkeeper told me to do, however I since discovered not all of what she did was appreciated by an accountant.

I pay £10 for a taxi and £5 for a sandwich while travelling (using my own personal cash not company card)

In Clearbooks I have a cash bank account called Cash.

I create a bill for £15 (see attached) made out to supplier miscellaneous travel

Using the quick pay form on the bill I put the amount(£15), the bank account (cash) and payment method (cash) and then click Pay.

The bank account cash now shows a balance of -£15.

NB: this is what I was told to do, however how would I then get (and explain) my own personal £15 from the company?

I could withdraw £15 cash to pay myself using my company debit card but what would I put as explanation for that in the main bank account import?

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7 Replies

I understand what you say but, these days, the initial meeting may be the only time the accountant actually meets their client face to face.

Overall, cloud accounting has revolutionised how I interact with my clients and most of them are now hundreds of miles away from me, but I still have regular contact on email, phone, Skype and Whatsapp.

In the early days when I was first contacted, if we couldn't meet straight away, we'd have phone or Skype chats and I used the latter and other apps to do screen shares to train them on their bookkeeping.

Hi Pete

I'm bound to ask, why doesn't you accountant tell you which method s/he prefers?

As you've spotted the above method now shows the company with negative cash and so I'd register a £15 transfer out of the director's loan (bank) account to send to the cash account. This will record that the company now owes you and not "cash".

Better still, if you want to use the bill creation route, quick pay it from your director's loan or the bank when you pay the money for yourself..

Better still, and what it's designed for, use Expenses in the Purchase menu to record your expense claims and pay these off from your directors loan or from the bank account when you draw the money.

so I'd register a £15 transfer out of the director's loan (bank) account to send to the cash account.

Aha, I have not got a Director's loan bank account set up. AS mentioned, I do think there was some issues when I got the advice on setting up Clearbooks.

I may have got in a mess with all this then based on the initial advice I was given by bookkeeper

I have two accounts (each has only me as sole director no other employees) , in neither did I set up a director Loan bank account

Company A = PT Music Ltd account codes:

1 PT Cash 8501002 Trade Creditors 2 PT directors loan account. 8503003. Other creditors

There have been no directors loan

Company B= Cafesaxophone Ltd account codes:

  1. 8503003 Directors loan Other creditors

This account has only one transaction

The company was set up with an initial loan from me of £19,400 (into the main bank account). That is the one and only director loan.

Is this a complete mess? If so how to fix it?

Thanks

Hi Pete - firstly yes, just transfer £15 from the DLA to the cash account.

Secondly, I have no idea what you mean I'm afraid with regard to the two company's accounts.

The Director's loan account feature in CB's banking section is one of it's most useful features, and I would always suggest people make use of it.

CB is a sophisticated bookkeeping system and so you really do need a basic grounding in how bookkeeping works if you are to avoid making a mess. In another post (two weeks ago) you said your accountant was away, so I suggest you wait until s/he returns to advise you on how you set up your books, it's very difficult to give comprehensive advice without detailed background.

Ultimately you are best off using someone who knows CB and can always have a look on the directory: https://www.clearbooks.co.uk/directory/

Secondly, I have no idea what you mean I'm afraid with regard to the two company's accounts.

OK, as suspected I may have made a pig's ear ((or the original bookkeeper who set it all up for me did)

Ultimately you are best off using someone who knows CB and can always have a look on the directory:

I totally agree, but the only one local to me has dead phone number. I'd prefer someone local as I can then see them if I decided to engage them as accountant for the companies.

I understand what you say but, these days, the initial meeting may be the only time the accountant actually meets their client face to face.

Overall, cloud accounting has revolutionised how I interact with my clients and most of them are now hundreds of miles away from me, but I still have regular contact on email, phone, Skype and Whatsapp.

In the early days when I was first contacted, if we couldn't meet straight away, we'd have phone or Skype chats and I used the latter and other apps to do screen shares to train them on their bookkeeping.

OK, I am starting from scratch but following the tutorial I have a problem right at the start:

https://support.clearbooks.co.uk/support/solutions/articles/33000203242

First it says

To enable the Adhoc expense payments method navigate to Settings > Configure system > Toggle Features.

But when I go to Toggle Features there is only Expenses on or off, no claim forms or ad hoc.

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