Transferred money from personal bank account to pay bill

ThunderheadThunderhead Member Posts: 2
edited October 2017 in Reckon One
We are in the very early stages of starting our own business, and have entered our first bill into Reckon One. Money was transferred from a personal account to a business account, which was then used to pay the bill. What is the best way to account for the transfer in Reckon One (without adding the personal account to the list of bank accounts, ideally), so that the payment can then be made from the business account to the bill?

Comments

  • edited October 2017

    Hello

    You need to setup an Equity Account called 'Capital Injections' or Drawings, depending on the type of Entity you have.  Transfer the money from this account to your bank account using Transfer Money (tick the box show all accounts).

    Kind Regards

    Kim Chapman

    Accredited Partner

  • ThunderheadThunderhead Member Posts: 2
    edited November 2015
    Thanks Kim, so the Equity account would start at 0.00, and I'd create a transfer from this account to the business account each time funds are transferred from the personal account to the business account, with the balance changing appropriately each time?

    This account will then be a record of how much money needs to eventually be paid back to the personal account, is that correct?

    (sorry if these are very basic questions, my accounting knowledge is a little rusty at the moment!)
  • edited December 2016
    Yes, that is correct.
  • AmitAmit Member Posts: 12
    edited June 2016
    HI Kim, once I follow process discussed above and transfer money from my personal account to company account...How do i then reconcile this item on the bank statement load ? I can't allocate it to anywhere so should I simple delete it? also, when I then use this money to buy an existing other business, should I do below transaction Debit goodwiill and plant/equipment credit supplier (selling company mentioned on contract of sale) I then pay/match the above invoice (Bill) when the bank statement comes in showing money out Thanks Amit
  • edited December 2016
    Hi Amit Not sure what you mean, with regard to the Bank Statement. If done correctly this transfer should just appear as another transaction on your bank account, and will reconcile as normal. If you are using bank feeds then it should just match. With regard to the purchase of the other business, if you are not sure what you are doing, perhaps you could engage a professional to advise you. There are so many other factors to consider here. But in general yes it can be entered as a bill with Asset accounts as the expense Accounts. Kind Regards Kim Chapman www.chapmanofficeservices.com
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