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Entering Payments made from personal bank accounts

Question asked by John 1 week ago

Hello I’m new to ClearBooks. I set my sole trader business up in March and while waiting for my business account to become active I had to make purchases on my personal bank and credit cards how do I allocate this in ClearBooks ? Also I have added cash into business how do I show this also so I don’t get additional taxed on my business profits?

1 Reply

Hi John,

You would need to create a loan account with which to make the recordings. You would record the purchases in Clear Books as bills and then you would pay them using the loan account. Once your business account is set up, you would use it to pay off the loan account via a transfer. Introducing cash into the business would be via the loan account also as money in.

All the best,

Mohamed.

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