Payments?

[cruiser]

A sole trader takes drawings each month, however, he often purchases items by use of both his personal bank account & personal Credit card account. The invoices are input into sage but as drawings are taken regularly how do you pay these invoices off?

[brucedenney]

There are lots of ways to do this.

1/ Set up a bank account called "Personal Bank Account" make bank payments for the stuff purchased on the personal account to this account do transfers from the normal bank account to this account for the regular payments and write off the balance of the account with a bank payment or receipt to 3100 - Drawings at the end of each accounting period.

2/ Set up an expenses supplier account. Post invoices to it, at the end of each accounting period enter a credit note on the account against 3100 drawings to offset the expenses (Note this method is no good if you are on VAT Cash Accounting as there will be issues with matching tax codes on the credit note to the invoices and unless things are paid, you don't get the vat back)

there are other ways...

How have you posted the invoices already?

[cruiser]

Thanks for the help. At last it has all worked out and I can sleep again.