Hi, Here is my situation. I have run my own limited company for 4 months, and wish to sort out my resulting accounts mess using SAGE. I have zero accountancy skills but good maths and am computer literate.
Here is my problem - How do I account for expenses made by either a)my own personal account or b)friends accounts on behalf of the company?
I have no problem with the basic idea :- they/I pass reciepts to the company, the company pays them back for total spent, and then the company shows these as direct expenses on accounts.
What I am stuck with is the technicalities of accounting for this via SAGE. Do I set each individual up as a supplier? If so, I can show the lump payments made to their bank accounts, but then how do I show and/or claim VAT for each expense against the REAL supplier?
Here is a concrete example :- Non employee, Mr B Smith, buys 1 ink cartridge (from Rymans the stationers) and 1 ream of paper (from WHSmith) for my company on Friday (because I was too lazy to go to the shops myself !!) with his current account. He passes me the reciepts, I add them up (inc VAT) and write Mr Smith a company cheque for the total amount. (i.e. from company account to his personal account) What do I put into SAGE? 1 Supplier (B Smith), two invoices (to MR B Smith) and one payment? 2 Suppliers (Rymans & WHSmith) and one payment?? I have no idea really. Help greatly appreciated.