Recording computer equipment purchase

Hi Pezza.

As I am not personally an accountant I am reluctant to give any advice on which accounts should be used but I will advise on best I can. Just be aware that any advice I give should be taken with a pinch of salt.

Generally if you have purchased the equipment this will still be an expense to your business so would still be recorded as an expense transaction to an Expense account. There are few pre-set ones you could use or you could create you own expense account from the Chart of Accounts page.

In terms of the account as you have said you have paid for it with your own credit card (Liability account) when you record the expense you would simply select the Credit card as the payment account used. If you have not already set this up you can do this through the Chart of Accounts and set up a liability credit card account to record purchases. As this would be a liability account, if you record purchases made from the credit card the liability will go up. When the time comes to repay this transaction you can simply make a transfer from whichever account you use to pay off the credit card, to the credit card itself. This will reduce the liability and pay off the credit card. balance.

Regarding the VAT. When you record the expense transaction you will be able to assign a VAT at the time of recording the expense. You mentioned you were on Flat Rate Scheme so you will need to set this up in the Taxes page under the VAT settings.

Hopefully this has been of some use but please let me know if you have any other questions and I will be back in touch.

Thank you for the response.

I have also just contacted my accountant with regards to the classifications, and he has confirmed that the "Computer equipment additions at cost" looks like the closest account to record this as.

He has also advised against connecting my personal credit card to QB, simply to avoid further complexity, so at the moment, I think I would need to process a claim for an expense in the usual way that I do other expense claims, however linking this to the tangible asset.

On the flat rate scheme, you can only reclaim VAT for Computer equipment and accessories, providing that the order total is over £2000 inclusive of VAT and it is all supplied on one order from the same supplier, however the point I am trying to make here is that the guides mention it can be claimed if an asset to the business, which is why I was leaning more to the asset accounts.

I am going to have a play any way, since I have plenty of time before my statement arrives, sometimes this is the best way to learn :)

Thanks again for the reply.

Andrew