Hi Isobel,
It is a very common scenario for sole traders, and Clear Books has a dedicated way to handle this using something called an Owners Funds account. You can add this by clicking on the Bank accounts heading on your dashboard and selecting the option to Add bank account. Choose Owners funds and give it a name like Owners Personal Funds.
When you make a purchase personally, you should record the details and the receipt in Clear Books right away. On your dashboard, click the Manually record expense button. Fill in the details from your receipt, such as the date, who you paid, and what the item was. In the field for Paid from, make sure you select your new Owners Personal Funds account. This tells the system that the business has incurred a cost but that you personally provided the money for it. You can also upload a photo of your receipt here to keep your records digital and safe.
At the end of the month, when you pay yourself back from your business bank account, a transaction will appear on your business bank statement. To make these two items marry up, you need to explain that bank transaction as a transfer.
Tommy
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