Quick Free Agent question

[scribblesvurt]

Hello,

I'm new to bookkeeping and to FreeAgent so sorry for the low level question.

If I do a job for a customer and create them an invoice for say £30. They then pay me £30 cash. The £30 is there for in the system as I created the invoice. I then spend the £30 out of my pocket on printer paper. I then create a new out of pocket expense for £30 for computer paper and attach the scanned receipt. I then need to create a manual payment for £30 to show that it has gone out to pay the out of pocket expense.

Is this the correct way of doing thing or am I getting it all mixed up! :-))

Thanks for any help with this matter.

Sam

[scribblesvurt]

Actually just re thought the question.

How do I handle payments and expenses without having to pay the recived money into my bank account and then pay for the expense with a debit card. Does that make more sense?

[Philip Hoyle]

Set up a bank account called "cash". Post the invoice payment as money paid by cash, so the "cash" balance increases, then post the expense as a payment out paid by cash, so the "cash" balance decreases. The balance in the "cash" account is the difference between monies received and monies paid.