Reconciling accounts

pete1702 · Sep 6, 2010

Hi,

I recently set up a limited company and I'm currently attempting to manage the accounts myself with Kashflow.

The problem I have is that when I started it I didn't have a business account set up so I was making purchases with my personal account.

I now have a business account so I've set them both up in Kashflow.

Currently when I reconcile the personal account I input all personal transactions as "Non Business" but do I have to continue this for the rest of the year even though I have stopped making business purchases with it?

Any advice would be appreciated, Thanks!

CassioAcc · Sep 6, 2010

You should not have a personal account within you LTD company books.

Any purchases made on a personal account before you set up the business account should be recorded in a Directors Loan Account.

You then only need to reconcile the company bank account.

Andrew @ PLA · Sep 6, 2010

Hi Pete

Anything you purchased for the business through personal funds should be allocated to the Directors Loan Account as the 'business' owes the money to 'you'. I'd suggest that you (if you haven't already) appoint an Accountant.

Good luck with your business.

pete1702 · Sep 6, 2010

Ok thanks I guess that would be the first lesson learnt.. not to mix personal and business transactions!

Do you know roughly how much it would cost to use an accountants services?

Williams lester · Sep 6, 2010

pete1702 said:
Ok thanks I guess that would be the first lesson learnt.. not to mix personal and business transactions!

Do you know roughly how much it would cost to use an accountants services?

Depends what you need doing, what your business is etc. Why not post a new thread with some details of the business and invite responses by PM.

accountancyextra · Sep 6, 2010

The best way to record these entries in Kashflow would be to set up a new bank account called Directors Loan (which is fairly straightforward on the bank tab). Then just record the business transactions against that. You just won't be able to reconcile the account.

HTH

MyAccountantOnline · Sep 7, 2010

pete1702 said:
Ok thanks I guess that would be the first lesson learnt.. not to mix personal and business transactions!

Do you know roughly how much it would cost to use an accountants services?

Hi Pete

You're certainly not alone in finding accounting difficult to deal with.

I am a Chartered Certified Accountant and if you want to take a look at my website we show our fees and how we operate which I think might be of interest to you.

http://myaccountantonline.co.uk/fees/

http://myaccountantonline.co.uk/what-we-do/

Dawn Lane · Sep 7, 2010

pete1702 said:
Ok thanks I guess that would be the first lesson learnt.. not to mix personal and business transactions!

Do you know roughly how much it would cost to use an accountants services?

Try looking for an accountant who uses Kashflow within their practice - http://www.kashflow.co.uk/accsearch.asp. Put your postcode in and it will tell you who your closest Kashflow accountant is.

I use TaxAssist - a countrywide franchise who look after their local business community.

Dawn

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Reconciling accounts

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