Self Employed & Social Welfare

CatchingDreams

I have two bank accounts 1 for the business expenses and 1 where my back to work enterprise allowance, rent allowance and child benefit is paid. I only started in May and I haven't included my personal account income or half personal/half business expenses such as electricity, gas and internet. I want to include those expenses in my accounts but then I will have to input all of my expenses and create journal entries to make them personal so they are not included in the business accounts for tax & vat. If I do this where should I put all the social welfare income so it doesn't appear in my business income side of the accounts? Should I create a social welfare account and if so would that be placed in equity?

Thanks in advance

tanit

I think you are talking about using an accountancy program. It might be a good idea to tell us the accountancy software you are using.

Most of them will have accounts for Profit & Loss and accounts for Balance Sheet. If you have no idea about this please read the help files or ask someone for help about doing this basic set up. If there is no way of creating accounts that will allow to create a personal and business set of accounts (some kind of cost centre) create separate accounts files. Don't mix the stuff that is supposed to be separate.

I hope this helps