Contra Account

I refer to the previous ticket below.

Thanks for contacting Clear Books support. Sorry for the delay in response time.

What you will need to do is set up a contra account (By heading to Money > Bank Accounts > Add) to record the money coming in from HMRC by a tax rebate. Then you will need to create a money in transaction explaining that it is coming from HMRC as a way of tax rebate. Then, you will need to create a money out transaction explaining it to the Accountants account. After this, you will have a remainder balance on the contra account, which you will need to do a money out transaction explaining it to your personal account. This will leave you with a zero balance on the contra account and will not have affected your bank account.

However, please confirm this with your accountant before taking any immediate actions.

If you need any further assistance feel free to get in touch.

i have added a cash account and included the HMRC Tax Rebate. However when i have tried to transfer it out to the accountants account, it doesnt give me the facility. The accountants are John Phillips and co and they are a supplier. Can you explain again basic step by step what i need to do.

I also have mobile phone bills and van insurance which come out of my personal account and therefore I would like to include these items as a business expense and i am not sure how to do this as if I show the payment, it will affect the bank reconcillation. I assume i will deal with this post as above, but i am not clear how to post the entries. I do intend to arrange for the direct debit payments for insurance and phones to come out of the business account in November.

Thank you for your time

Regards

Hello Trish,

For the VAT transfers, how are you doing this may I ask? It is not very clear in figuring out where you are explaining from and where the money is being moved to.

In regards to the last query about business expenses being conducted on the personal account, you will need to add a new bank account and that will be a directors loan account.

You will need to make the bills as usual and then explain them to this directors loan account. This will put the DLA to a negative balance. You do not need to import your personal bank account statement, you just need to make bills and allocate them to this DLA.

When you pay from the business to the personal, you will explain the bank line as a transfer from Lloyds to the DLA. This will bring the balance to zero indicating no further payments from the business is required.

Vanish

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