Hi Pete, I am looking for advice on business expense records. I have a bank account for money going into my business but as I am a startup I have not being paying for business goods etc. out of this account as there is not much in it. I have being paying for goods for my business in order to make a profit via Paypal which has my personal bank account attached to it. To record an expense do I add Paypal as a credit card and put my personal account number etc. in in and put the balance as zero?
Hi Pete, I am looking for advice on business expense records. I have a bank account for money going into my business but as I am a startup I have not being paying for business goods etc. out of this account as there is not much in it. I have being paying for goods for my business in order to make a profit via Paypal which has my personal bank account attached to it. To record an expense do I add Paypal as a credit card and put my personal account number etc. in in and put the balance as zero?
At the end of the year. It's all income is taxed and business expenses are deducted off your tax.
I don't really understand your setup.
But it's always ALWAYS good to keep your personal accounts and business accounts separate 100%.
Ways you can do this.
Create a main bank account for the company.
Create a bank account called PayPal.
Create a bank account called Petty Cash do a bank transfer from the main to Petty Cash bank account. Then when you buy stuff in a shop with cash just create a Bill and Mark it as paid with the bank account Petty Cash.
Does that make sense?
How your doing it now is now everyone starts off.
Remember you are the business so it technically doesn't matter who pays what. So your 100%.
But, going forward it's easier to manage the other way. That's what we're her for right.
Good work