I use my company AMEX card to pay for personal items and pay down AMEX once a month but all my personal expenses are included in VAT returns, P/L and B/S.
QB support line advised my to set myself up as a supplier, use NO VAT and uncategorised expense so via bank feed each time a personal transaction comes through I categorise as above. Reconciliation works perfectly.
To pay the company what I am due (detailed in supplier account above) I was advised to set up myself as a customer, uncategorised income, NO VAT and create an invoice for the months total. Payment is received to a Personal bank account I was also advised to set up then finally I pay down credit card using funds from that account.
All reconciles no problem but all the expenditure and income are shown in P/L and B/S.
Is there a way to keep reconciling via live feeds but exclude personal transactions from reports and vat
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Hi JamaicaA, thanks for the thorough and speedy reply. I fully understand that it is not recommended to mix business and personal expenses but it is one of the advantages in using AMEX, the more spent the more earned with these earnings being used to pay for business travel, materials purchased etc. I intend for my last financial year to get my accountant to journal out the personal transactions and moving forward will decide between the 2 suggestions you mention in your reply.
Great job on documenting entries and setting up profiles for recording, Simmons. Before reconciling, consult a tax professional to exclude personal transactions from VAT reporting. I'll elaborate and explain the differences between the two reports to clarify the expenses and income shown.
In QuickBooks Online, the Profit & Loss statement displays expenses and income, and the Balance Sheet reflects assets, liabilities, and equity. Since the personal uncategorised expenditures and income appear on both reports, review the categories you selected in the live feeds. Ensuring a clear separation of accounts provides an accurate picture of business performance.
After verifying they're in the correct accounts, we can adjust the reports by following these steps to exclude the personal entries:
For more ways to personalise reports and get the most out of them, refer to this article: Customise reports in QuickBooks Online.
Additionally, I recommend seeking help from a tax professional if it's okay to exclude these transactions from VAT reporting. This way, we can ensure compliance and proper documentation, reducing the overall risks associated with tax reporting.
Moreover, please know it's a good business approach to avoid mixing business and personal expenditures. Since you're using AMEX for your items, check out this guide for another method to handle this situation: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.
Once everything is settled, you can continue the reconciliation process to evaluate whether your QuickBooks transactions match your bank and credit card statements.
It's my pleasure to assist you in classifying the entries. If you have more questions regarding the reports or VAT, comment below. We'll be here to address them.
Hi JamaicaA, thanks for the thorough and speedy reply. I fully understand that it is not recommended to mix business and personal expenses but it is one of the advantages in using AMEX, the more spent the more earned with these earnings being used to pay for business travel, materials purchased etc. I intend for my last financial year to get my accountant to journal out the personal transactions and moving forward will decide between the 2 suggestions you mention in your reply.
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