Personal to Business Transfer Mistake

[trevorgoldon]

Hi,

I am a Sole Trader, with a separate business bank.
I was intending to transfer funds between my personal account using BACS.
Unfortunately, by mistake I made the BACS to my business account and I'm not sure what I should do next.

I don't want that money in my business account, can I just do a transfer back to my personal bank?
Not sure if I can do that or how I should record the transactions (Quickbooks).

Any help is appreciated.

Thanks.

 

[MyAccountantOnline]

Hi,

I am a Sole Trader, with a separate business bank.
I was intending to transfer funds between my personal account using BACS.
Unfortunately, by mistake I made the BACS to my business account and I'm not sure what I should do next.

I don't want that money in my business account, can I just do a transfer back to my personal bank?
Not sure if I can do that or how I should record the transactions (Quickbooks).

Any help is appreciated.

Thanks.

That's not a problem - just transfer the funds back again.

Your records should show the money coming in as capital introduced and out as drawings.

 

[trevorgoldon]

Great. Thanks for the help

 

[David Griffiths]

Your records should show the money coming in as capital introduced and out as drawings.

Personally, I'd show them both as drawings, cancelling each other out. We don't know how much is involved but if the sum was enought to inflate drawings one year so that it dropped the following year, that could give rise to a query.

 

[MyAccountantOnline]

Personally, I'd show them both as drawings, cancelling each other out. We don't know how much is involved but if the sum was enought to inflate drawings one year so that it dropped the following year, that could give rise to a query.

I tend not to net monies off but appreciate what you say David.