Great video, thanks. It's been over 10 years since I did any small business accounts (it's not my main job, just a necessary 'evil') and that was with Sage with assistance from my accountant at the time. Really liking Xero but couldn't quite work out how to do the Director's Loan stuff and this was spot on to give us the information needed in the early days.
@XUSolutions4 жыл бұрын
Glad it was helpful!
@jeffrey81544 жыл бұрын
Side note: You have the best Xero videos on KZbin hands down.
@XUSolutions4 жыл бұрын
Thank you, I try my best :-)
@tonia53644 ай бұрын
Hi Marion. When you pay for an invoice using the DLA, where are the actual funds being credited from to pay the bill? I understand that the DLA will be Credited and therefore create a liability to repay the director, but where are physical funds being credited from to actually pay Vodafone? Hope I’m making sense? Thanks x
@chipedzalusinga68494 жыл бұрын
You really "keep it simple " ....great quick videos . Well explained
@XUSolutions4 жыл бұрын
Glad you like them!
@JanosFeher3 жыл бұрын
This is a very useful video, thank you! I'd recommend to adjust the title a bit like "Using the Director's Loan Account to allocate share capital and to record personally paid items in Xero" or similar. In the video you cover the case when a director paid a purchase invoice from her own pocket which can be recorded as a "bill" paid from the Director's Loan Account.
@XUSolutions3 жыл бұрын
Great suggestion!
@Tastygarybites6 ай бұрын
A massive help thank you so much , trying to do my first year accounts for my Ltd company with zero , do you have a video for that 😅
@martinarobinson18197 ай бұрын
SO Helpful - thank you so much
@XUSolutions6 ай бұрын
You’re welcome
@lisapethick26133 жыл бұрын
Really helpful - thank you. well paced and easy to follow.
@XUSolutions3 жыл бұрын
You're welcome!
@TT-nh7rx Жыл бұрын
How do I add pre business start up purchases into xero? I used my personal bank/credit cards. I’ve been told I’m not supposed to add personal accounts to xero as they’re not business accounts. I did try but it wouldn’t work.
@garyfowler7153 жыл бұрын
Really useful video, thank you very much.
@XUSolutions3 жыл бұрын
You are welcome!
@mohammadaqib40194 жыл бұрын
Thank you for sharing this information
@XUSolutions4 жыл бұрын
Glad it was helpful!
@charlottenuttall68522 жыл бұрын
Thank you for this helpful video. I watched a video you produced on items paid for personally. I followed the instructions and entered the transaction into the manual journal, going in as a debit and then coded as a directors loan credit. If you then transferred the paid for personally item amount back into your personal bank account how do you code this transaction when you reconcile ?
@XUSolutions2 жыл бұрын
You simply code the payment to the director’s loan reducing the liability - ie the company is now due to repay the director less. If that was the only DLA transaction then the DLA would be nil after the repayment.
@charlottenuttall68522 жыл бұрын
Thank you, I did read this in one of the other comments but just wanted to double check.
@scotttemple-farmer35014 жыл бұрын
great help, thanks.
@XUSolutions4 жыл бұрын
You're welcome!
@killahills103044 жыл бұрын
Great video thanks for sharing! I am wondering if you can help me. I have a limited and my partner and Mother helped finance my first year. Do these payments go into the DLA or should each loan have their own DLA?
@XUSolutions4 жыл бұрын
I would recommend that director's have separate loan accounts. And if they are not company directors, still create a loan account and name it 'Loan from XXX"
@mikeschollar3 жыл бұрын
Hi Marion, how would I go on with an existing directors loan and inputting that when setting the company up on Xero? Obviously the funds have already been out laid to the company for several years therefore the transaction in order to reconcile the directors loan won’t exist.
@XUSolutions3 жыл бұрын
Hi Mike, you would enter the amount as an Opening Balance in Xero. These are referred to as Conversion Balances and you will find them in Accounting Advanced Conversion Balances
@patricialife68032 жыл бұрын
very useful but what about if you don't have a business bank account yet?
@XUSolutions2 жыл бұрын
Then you would leave all the transactions in the Directors Loan Account
@Warmfuzzymedia3 жыл бұрын
Good but how do you deal with cash items paid by the 'director' :)
@changhazi2 жыл бұрын
I have a question that if Director invest in company then we can debit bank and credit capital account simply.? but why directors loan account created and and adjusted to capital account in seperate entry. ?
@XUSolutions2 жыл бұрын
You would use the loan account if the shares were not actually paid for. If payment was made what you suggest is correct.
@faridamutiara20944 жыл бұрын
Hi I found your tutorial is very helpful, just one question please, I hope you wouldn't mind to answer, as I'm still a little bit confused about this: is it still correct, if I create 2 accounts for the directors loan? for example: 635 Loan to Director (Current Asset) and 835 Loan from Director (Current Liability) ? or I just need to add one, 835 Loan from Director (Current Liability) only (like in your video) thanks
@XUSolutions4 жыл бұрын
Hi Farida, one account is enough to record all transactions
@ministermusic66776 жыл бұрын
This is very informative video. Like it very much
@XUSolutions6 жыл бұрын
I'm glad you liked it
@ministermusic66776 жыл бұрын
Can you please email me on pm.atulkumar@gmail.com so that I can send you the excel sheet in which I narrate you the problems while reconciling the VAT so you can refer to that & prepare your next video on VAT reconciliation. Awaiting your valuable response. Thank you
@XUSolutions5 жыл бұрын
If you want further help with Xero, check out my online courses here www.udemy.com/user/marion-thomson/
@balazssallai10844 жыл бұрын
Hi Really nice and useful video. I have a question. How can I post bank charges against Directors Loan? What is the best way? Thanks
@XUSolutions4 жыл бұрын
You can enter a manual journal, debiting Bank Charges and crediting Directors Loan.
@nezamsohel4672 жыл бұрын
THANKS
@XUSolutions2 жыл бұрын
You're welcome!
@Kacili_McKur3 жыл бұрын
Hi thanks for the video it was very helpful. I have a question however... if the directors have now been repaid and the directors loan account is back to 0, how does the company lend money to a director and where can i find a video on that process? Thanks
@XUSolutions3 жыл бұрын
I don't have a video showing a director borrowing money from a company as it's not recommended practice.
@Kacili_McKur3 жыл бұрын
@@XUSolutions Says who? It's one of several acceptable ways to withdraw money from your company and people should be taught how to do it properly.
@XUSolutions3 жыл бұрын
Sorry it’s not on my list to do but I’m sure you can get help elsewhere.
@XUSolutions3 жыл бұрын
Which country is your company in Korrin?
@Kacili_McKur3 жыл бұрын
@@XUSolutions The UK
@rllm5614 жыл бұрын
Thanks so much this was really helpful - do you have a video on how to handle customer returns i.e. what to code it as :) many thanks
@XUSolutions4 жыл бұрын
Hi, you should code any returns to the same code as the original transaction.
@rllm5614 жыл бұрын
@@XUSolutions Thank you so much for taking the time to reply!
@XUSolutions4 жыл бұрын
@@rllm561 you're welcome
@depfeffel64555 жыл бұрын
Really nice video, thank you
@XUSolutions5 жыл бұрын
You're welcome :-)
@hollieharker86074 жыл бұрын
I'm not starting out but migrating over from sage to xero. I have 18,235.24 in my business as a directors loan. How do I put that in directors loan without putting it through the bank
@XUSolutions4 жыл бұрын
Hi Hollie, this would be dealt with in your conversion balances.
@raztaxaccountantsltd15292 жыл бұрын
Hi i need your help for journal entries through bank reconciliaton \
@XUSolutions2 жыл бұрын
You cannot enter a journal entry to a bank account
@wafaben62434 жыл бұрын
Is the Direct loan account a liability? it's capital introduced by the owner of the business so increase the capital account. I am confused... anther concern is about the share capital account which is usually CR to increase stockholders' equity section. why should the owner pay £ 100 for shares? please someone can help me, thank you
@XUSolutions4 жыл бұрын
If the company is owe the director money, then it is a liability to the business. The company is a separate legal entity to the shareholder/owner, so the owner is legally obliged to purchase any shares held in the company.
@GaryBrown-v4o5 жыл бұрын
If I wanted to take out my funds in my Directors Loan account how would I log that in xero?
@XUSolutions5 жыл бұрын
Make the payment and then when the amount appears on your bank reconciliation, code it to the Director's Loan Account. You should then double check that the Directors Loan Account balance is zero.
@ibrarbutt14666 жыл бұрын
Well planned and delivered, Wondering should we have two separate director loan accounts for two directors?
@XUSolutions6 жыл бұрын
You definitely want to have separate loan accounts
@dimitriosparasoglou3 жыл бұрын
@@XUSolutions how do you create additional director loan accounts?
@XUSolutions3 жыл бұрын
@@dimitriosparasoglou go to the Chart of Accounts and add a new account