Reduce your tax bills
However, sometimes the company card doesn’t work or you accidentally pay with your own so these expenses also need to be recorded.
The good news is you can easily record expenses paid from personal accounts in Kashflow. To record mileage or subsistence using Kashflow, follow the five steps below.
How to record your expenses in kashflow
Log in to Kashflow and select “Purchases” from the menu on the left hand side of your screen.
Select “create new purchase” and the following page will open.
- Select “mileage” or “subsistence” from the drop down menu in the “supplier” field and enter the date the expense was incurred in the “issued date” fields. All other fields may be ignored.
- Then click “add line item”.
Depending on the supplier you have selected, the purchase code will be automatically updated to “mileage” if mileage is selected as the supplier or “subsistence” if subsistence is selected.
- In the product field select the appropriate product
- In the quantity section enter the number of miles for mileage or number of days for subsistence
- Enter an appropriate description of the transaction into the “description” field
- All other sections will be automatically completed
- Click the “save” button in the top right hand corner of the screen (not visible in this screenshot)
Once the purchase has been created click the “add payment” button in the bottom right hand corner of the screen.
In the account section, click on the dropdown menu, select “director’s cash account” and then click “save”. This is to show the payment has been made personally by the director.
How can we help?
Cobia Accounting specialises in helping small businesses (from one to 100 employees) make the most of the tax savings available by setting up companies on their behalf and providing accounting services for a fixed monthly rate.
Kashflow is the main accounting software package we recommend to our clients, however, our accountants are also experienced in using Freeagent, QuickBooks and Xero.
To find out more about our accounting and taxation services or for assistance with setting up your limited company, contact us today.