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Petty Cash, Money Gifted to the Business Account and Car Loan Repayments

Started by Adam O'Daniel -   in Small Business

Hi,
I'm wondering if anyone can help me out, I am having a couple of issues.

I have realised I can't input when cash has been used to pay for items, if I was to make a Petty Cash Account can I then somehow move it so it shows in the Business Account? Or do I total the Petty Cash account and then input it in the Business Account under Cash not banked??

I was also Gifted money to my business account but it was meant for personal use not the business - how do I code and tax rate that so it doesn't show against the business? It came in and then I transferred the funds to my Savings account - is the transfer out just owner's drawings (with BAS Excluded or GST Free Income as the Tax Rate?) but will that still show on a statement somewhere when it comes to Tax time?

I also had a client accidentally transfer funds to me which I then refunded back (through my bank), same as above how do I code and tax rate those transactions so they don't show on the business or at least don't have me paying tax on them?

And lastly, car loan repayments - on the previous accounting program I used it was listed as an expense but on Xero it is a Non-current Liability and then doesn't show on the Profit and Loss Statement. The car is 100% used for business purposes - fuel, maintenance and registration/insurance are expenses (GST on Expenses).

Thank you for any help you can give!
1. Petty Cash. Yes, set up a Petty Cash Bank Account. Then record all your cash transactions in and out of it. When you replenish Petty Cash from your operating account, record a Transfer from bank to cash. If you deposit cash from the Petty Cash account into your bank account, record a Transfer for that as well.

2. Both the deposit and the withdrawal should have been recorded to your owner drawing account. I can't help you with the tax aspect.

3. Loan principal payments should never show up on the Profit and Loss. The interest portion should. Xero is handling it correctly and your previous program was not. Think about it--if the loan payments are an expense, the loan would have been income. Is that what you want?Probably not. The operating expenses of the car are a separate issue and should be on the P&L.
 

Nancy Leach