Accountz year end accounts versus my Accountants

[cmollo]

Hi

I have successfully completed my year end accounts, which I am delighed about.

However I know that when the accountant gets them she will produce another P&L / Balance sheet with different year end figures. This is because whilst I rent a church hall for class 4 hours a week, I work from home on this business the rest of the working week upstairs in a bedroom come office.

So you see the accountant will ensure that a share of my home expenses are included in the figures as well as weekly allowance for mileage to the post office, stationers etc.

Currently in Accountz I have not done this. So how do I do it?

I need to allow for the following:
1/utility bills - gas and electricity - phone is dealt with
2/Rent for the business - how do I decide what to charge the business for renting the bedroom/office space?
3/salary - I have not paid myself a salary because I could not unless I loaned the business money to pay me. Should I do this?
4/mileage estimate for general mileage to post office, stationers etc.
5/Book keeping service - I need to pay something to myself for book keeping services each month.

Can you tell me what I do to sort this out? Where do I show them? How do I manage reconciliation each month? Or is it better to just show these items at the end of the tax year and if necessary to loan the business the money in order for the business to pay it?

I hope you can help?
Many thanks
Caroline

[Quentin Pain]

You can put them all in your accounts Caroline. Just treat the amounts as cash, then reimburse yourself when you can.

1/utility bills - gas and electricity - phone is dealt with

Purchase Transactions: From Cash To Electric. The amount is how much you think you can charge. That is a question for your accountant and HMRC. If you had 4 rooms and used 1 for buiness, then 25% would be seen as fair, but you must get advice.

2/Rent for the business - how do I decide what to charge the business for renting the bedroom/office space?

As above.

3/salary - I have not paid myself a salary because I could not unless I loaned the business money to pay me. Should I do this?

If the business cannot afford a salary, then you cannot pay yourself. There is nothing wrong with that. If you are a limited company, then it would be on PAYE, which is an expense.

4/mileage estimate for general mileage to post office, stationers etc.

As 1/2 above.

5/Book keeping service - I need to pay something to myself for book keeping services each month.

The same. These are all expenses. You need to decide/agree how much. If you are self-employed, then you would be creating 2 businesses. If you are a limited company, then you would be an employee of your company, and also a self-employed bookkeeper. There are tax implications. Get advice from your accountant about the best way to do this.

Adding transactions in Business Accountz for all of the above is easy in comparison with making sure you get the right tax advice.

[MandyJane]

We are in a partnership and one partner has decided to work part time. There is agreement that the other partner will take a salary in respect of the addtional duties carried out. Would I need to create an expense account for this and attribute part of each amount taken from the bank each month to expenses and part to drawings? I am unsure as reading other threads I am aware that as the company is not limited the money taken should be recorded in a folder I have set up in the Equity Group. However I need to record that the split of profits comes after accounting for the salary.

Mandy

[Quentin Pain]

Hi Mandy, if the salary is on PAYE then yes it is an expense of the business as are the Tax and NIC payments for that salary.