Soma Small Business Solutions can show you how to increase your productivity and profits and decrease frustration.
Dianne Mueller has worked with Simply Accounting / Sage 50 Accounting since 1988 and is a Platinum Level Sage Certified Consultant and a Sage Contracted Instructor.
Dianne can show you how to make your accounting software work for you in real-time by supporting web-based Cloud Accounting Solutions.
Hello Dianne
I am a newly published author who incorporated in BC last summer mainly to keep annual royalty payments (first is due in April) at arm’s length from personal income. My daughter is co-director of OGC; we have no employees. No inventory of course, no GST registration (CRA advised against it), no sales. Just occasional minor transactions. Right now we are a $0 operation: we have no money, literally. However, to do things right, I have decided to invest in the Sage 50 First Step software package.
The problem is that, having no money in the company means that I shall have to use my personal credit card to buy this software, and I have no clue how to account for such a purchase as a company expense. This applies too to such running expenses as monthly business banking fees (to Vancity) and paperclip purchases, all of which I have been paying for since last July out of my personal funds (debit or credit card).
As you can see, my problem is a very simple one, and I wonder if you could possibly solve it for me. As business grows and more books are published, I hope we can work together in the future. If you need more information about OGC, please visit our website. If a meeting is needed, I am happy to ferry over to Gibsons.
Sincerely
Adrian
Hello Adrian and thank you for visiting my website.
You will definitely want to track the personal funds that you are spending on business expenses. When you post those expenses into First Step you will post them to the business expense category/account that it represents (Example First Step would go to Office Expense) and the other side of the transaction will be “Loan from shareholder” because you have incorporated the business. In the future you will have a accurate record in Loans of Shareholder of how much money the business owes you back when it has the funds to pay you back. Be sure to keep all your receipts. These posting can be done using the general journal entry window or screen.
Debit the appropriate Expense Account and credit the Shareholder Loan Account.
All the best
Dianne