Hey there, so bear with me but this is all new. I have a small business that was started in July 2019. There wasn't a huge amount of activity in the business, but as a Director, I loaned £564 which was paid into the Director's Current Account in Quickbooks. I worked on the business' first project and the business got paid for the work. The first mistake I made was that I then invoiced the business as a Director in order to pay myself. Doing this left my Director's Current Account in a negative balance before Year End, because I paid myself more than my initial £564 loan had been.
I have since realised this is not the way to pay myself, and have set up Payroll. In order to try and fix my issue with the Director's Current Account, I have run payroll for September 2020 and October 2020. Instead of actually paying the money from the business bank account (because I had already paid myself with these invoices in 2019), I transferred the salary liability, debiting the bank account and crediting the Director's Current Account.
My issue is that because I did this after my year end, filing my accounts is proving difficult because of the negative balance. Can anyone help me make sense of this?!
