I expect the purists will shoot me down but here’s what I’m trying to achieve:
I have a Company & associated set of accounts.
I also keep accounts for my personal finances - Bank, Credit cards, Savings accounts etc… as well as expenses.
Quite often I pay for company purchases with my personal credit card & occasionally pay personal expenses from my company bank account.
Each time that requires DOUBLE the number of accounts entries, one in the company’s accounts and a coinciding one in my personal accounts.
I’m trying to eliminate that extra work.
In the past I’ve set up ALL personal accounts inside the company’s chart of accounts with a Current Asset acc called Personal with sub accounts (Bank Credit Cards, Expenses, etc). That way I was able to debit the company expense and credit my own credit card account in one entry.
Unfortunately that eliminates the reconciliation from the sub-accounts because they are not set up as bank accounts (but as current assets - with positive or negative balances).
I also need to keep the company reporting on company matters, mainly for GST.
Is there some way in Manager to achieve this where all bank accounts, credit cards etc can be normally set up (as Cash accs) but where they can be segregated into company & personal so that any double entry has access to both company & personal accounts simultaneously, but expenses are kept separate?
Of course my personal Credit Cards are not company liabilities and should not appear in the company balance sheet. My tax accountant is OK with having 1 account in the balance sheet to manually eliminate.
Might this be possible by making my personal accounts a Department perhaps?
I’m not worried about repayments between the two parties for this purpose.
Yes, under Settings > Chart of Accounts create under the Personal section, Custom Control accounts for each of your bank & credit card made up of Bank Accounts.
Then create under the Bank Accounts tab your personal bank and credit card and allocate them to their respective Custom Control account.
Now your personal bank account will be listed under the personal current asset section and be reconcilable, repeat the above for the credit card.
I haven’t discovered the use of control account. Since it is mentioned here, I would like your advice if this method applicable to my banking setup. Our bank accounts are made up of both company and personal. The bank under the company’s name is mainly used for payroll and receive money. For all our expenses, we use personal bank accounts and credit cards to pay for any purchases or payments to the suppliers. The reasons we do not use company’s banking to do all the payment are that the bank does not provide debit card and the requirements for the company credit card too much to ask for. Therefore, we use personal accounts to make payments. Our current setup, we transfer funds from the bank to personal, and we spend money through it. For our credit card, we use expense claim. Would the use of control account designated to use for this purpose?
the initial topic i believe was in case both the personal and business accounts are managed.
in your case you are just using personal account for business purposes. if you are not maintaining a record of personal expenses other than incurred for business, what you are doing at present will be sufficient.
The purpose of the custom control accounts is to provide the ability to place various control accounts in different locations on the Balance Sheet. If for example under the Bank Accounts tab you had accounts such as Main Bank and Main Credit Card.
Generally, credit card balances are credits (liability), so the custom control account would allow you to position the Main Credit Card balance under the Balance Sheet > Liability section rather then being grouped under the Balance Sheet > Asset > Cash at Bank label.
So for your situation, they would only be relevant if you included the personal accounts as part of the Business chart of accounts.
