Sole Trader - How to deal with personal transactions in Reckon One?

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  • Updated 8 months ago
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I am interested to know how I might simply manage personal banking transaction in Reckon One.  I am looking to use this product for my daughter and her partner who each operate as sole traders selling their services in different fields .      So they will have a Book each.  Each doing quarterly BAS statements

I will customise the chart off accounts to meet their individual needs and set things up so they can use the Invoice module.

Where I am having difficulty is envisaging a simple work flow for them to deal with Bank transactions.   Once a month it is easy enough to download and import the transactions from their online Bank accs into Reckon One.   But then how to deal with dozens of non work related transactions passing through the acc each month?  Food, entertainment, clother you name it.

Work related Invoices and Bills will be simple to match with rules I guess.   

But the Reckon One reconcile process appears to need every single imported transaction to be assigned a contact (suppllier/customer) and a account for it to be allowed to reconcile.  This seems very tedious.   

I imagine I will need to create Equity sub accounts; Sole Trader Drawings & Sole Trader Contributions and direct all personal spending there so as it stays out of the business.

I would e very interested to hear how others  have dealt  with this sort of scenario.    
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Ted

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Posted 8 months ago

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Angela Bichler, Accredited Partner

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Hi Ted,  the simplest way to deal with the personal transactions when reconciling the uploaded bank transactions is to click " ignore for now" on these transactions and when you have finished reconciling all the business related transactions, delete these personal transactions and then do one "add payment" entry for all those personal transactions in the month and use a generic supplier called cash and code to the drawings ledger account . It saves you having to allocate each and every private drawing. Hope this helps :)
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Ted

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Hello Angela, Thank you for the suggestion. That makes sense and would indeed do the trick.  Still a bit of it of a kludge though, to have to make the balancing transaction and go through and delete delete delete..  I will fiddle around with it to see which method is simpler to use!

In the long run it might be quicker & simpler to assign each and every personal transaction to a fictitious supplier called "Self "and and account  "Sole Trader Drawings".  

I guess if I judiciously create a set of rules I might be able to take a it of the back ache out of dealing with the personal stuff in any case.  

MYOB Essentials caters for this scenario by having a shortcut process that requires the account to be assigned and requires no other detail to Make a Payment (Spend Money). So allocating transaction is heaps easier. The expenditure or income can find its way to the correct area with only the account detail being required.  Wish Reckon one did this too. 

Again thanks for the excellent suggestion.

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