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Post Info TOPIC: Quickbooks Online - how to process expenses paid for by Director?


Master Book-keeper

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Quickbooks Online - how to process expenses paid for by Director?


Hi all

Just set up QBO Accountant as have taken on two new clients who use this software.  

Looking to how best (or the only way?) to key business expenses that the Director has paid for personally. Non VAT ones I can journal easily, but this does not appear to be an option for VATable items as there is no way to include an amount as VAT included, as far as I can.

Option would appear to be a dummy Director's bank and clear from his DLA in bulk say once a month.

Just wondering if I am missing something in this software?   Is there another way to do this more easily?

Thanks 



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Master Book-keeper

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Hi Joanne

As you know I'm not familiar with QBO but having a quick scout round a DLA bank account would be your best option.  Would you have to clear it once a month?  I'd be minded to clear it at the end of the year and just treat the DLA bank as the DLA until year end.



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Hi John
Well according to their Accountants technical helpline I cant put the expenses through as they are clearly not business ones if paid for by the owner/Director!  I would biggrinbiggrinbiggrinbiggrinbiggrinbiggrinbiggrinbiggrinbiggrin if that wasnt such bad advice!

Its just that I (stupidly) thought they must have cracked it and come up with a great way of doing it, especially given all the Accountants etc who sing the praises of the software.  There may also be an issue with vat on journals although Im not sure if they were giving me more duff info, or its just you cannot do VAT inclusive journals.  

Thanks for having a scout around. Tis appreciated!

I already have a DLA with entries in it, plus now the dummy bank DLA.   With QB the dummy bank one will only ever sit in the current assets side of the balance sheet, whether its in debit or credit!!  (At least with other software you can mark a bank as a floating account so it reports in the correct place!)

This client does a monthly 'expenses' sheet so kind of makes sense to add the reconciliation of the dummy bank in to the process on a monthly basis and then just shuffle it across the the DLA at that point. Its only a couple of minutes of a job and he can see the total DLA reported via one account/in the correct part of the books on his mobile.

Thanks again.



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Master Book-keeper

Status: Offline
Posts: 3904
Date:

Hi Joanne

No worries biggrin     

Bloody hell, I can't believe that advice you were given, jaw has dropped in astonishment.

Fair point on the DLA bank if you're reporting monthly, that makes sense I agree.  



__________________

John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.

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