sorry if this is obvious, book-keeping question..

[meemar]

If you transfer money from a personal account into your business account to cover business costs, how do you record the transaction on the books? We've not had to do this before.

Do you record it as 'income' in the same way that payments from customers are?

(DH is a builder btw)

Thanks

I usually just show it as an income/cash injection so i can balance books and let the accountant sort it at year end.

I'd call it a capital injection.

If you put it as income you will be taxed upon it!

good idea to photocopy statement of what bank account it came from and keep it with that transaction. prob is that you dont want to pay tax on it as you have already done that. hope thats clear got an unwell lo on my knee

thanks, will do that

Treat it as capital and should show up on your balance sheet as such at the end of the year.

as the others have said, are you doing manual or computerised records?

Also it shouldn't be treated for income for many reasons. You may have to pay more tax, it inflates the turnover of the business and doesn't show the real value invested in the business by the owner.