I'm very new to bookkeeping, having done an online course in Sage and been told to get on with it by my boss! That's all fine, and I generally muddle my way through things, but there are a few things I am stuck with, if someone could help.
1) The MD often pays for equipment out of his personal bank account, or a personal credit card, the amounts however do not always match i.e. he transfers £5000, but the total cost of payments is £4500. He then transfers money out of his business bank account into his personal accounts. How do I account for this in Sage? I thought I would transfer the amount out of the bank account into petty cash or cash register (I don't know what this latter one is for?). I would them make a purchase payment out of the petty cash/register account? Does this sound right?
2) Missing invoices. There are a lot of Payment on Account entries - where they have paid for items and not allocated it to an invoice. Some of the invoices, I doubt I will ever get an invoice for (there are loads for subcontractors missing and people who no longer work for us). How do I deal with this? A similar issue - there are other payments on account for suppliers where they have purchased equipment, but through going into the shop and buying, rather than through the normal account. They have then been posted on Sage through the supplier payment, but I think they should have been bank payments as there would never been an invoice, just a receipt (the latter, they don't have either!).
Hope all (or some of that makes sense)...please can you help?
Arent bosses lovely. Might be worth getting the Sage for Dummies book from the library - its a great big thick book but does have some really useful stuff in it, although of course we are always happy to help on here. So here goes. I would say to your boss that you always need a receipt, whether its been paid for personally, via the business, via cash, card or from outer Mongolia. I also tell my more difficult ones that without a receipt then I cannot claim money back from the VAT AND he might pay more in Corporation Tax as the invoice/receipt allows the allocation in the accounts - that usually works!! For the sage part I will try to take each item on its own:-
1) Paying for equipment personally by his personal card. So - key the invoice to suppliers in the normal way. Set up a Director's 'Bank' account in your Bank account screen so it sits next to your other business Bankand petty cash accounts. Pay the invoice from this in the usual way via the supplier icon. This clears the supplier account and will create an overdraft on the Directors Bank. Then eg monthly clear the Director's Bank account from his DLA nominal code (by way of the Bank receipt icon to the Director's Bank)
2) Paying for equipment personally by way of transfer from the business account (with a bit extra eg £5000, cost £4500 as you describe above) - Pay the supplier for the £4500 in the normal way from the business bank, then key the balance £500 as a 'payment' from the business bank to DLA n/code. (Ie you will have two entries for the £5000 transfer on your Bank rec).
3) Missing invoices. Chase (using the excuse above). You should still be able to get invoices from people who dont do work for you - Ive just had a similar situation and chased for a pile, only had one person who has been a little awkward and said he has sent them, but Ive not finished my charm offensive with him yet. If you dont have the contacts - ask your boss.
4) Not sure what you mean by the similar issue?? You dont need an invoice if you have a VAT receipt and you can still set these up as suppliers - use the receipt as if its was an invoice and when payment is made key it as a supplier payment. Again - chase for any missing receipts - most places are helpful!
Hope this covers it all
__________________
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
Thank you for the reply (I work part time so hence the delay in coming back to you) - have been putting it into practice. I currently have loads of grubby, torn and generally mangled receipts my manager dug out of his van! Hopefully, we will get better practice in place.
You're very welcome. Thats pretty standard for receipts Im afraid, Ive only had one customer who organised them before he handed them over! Good luck with the rest of it.
__________________
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
