Thanks for replying Luke, although I am still confused. Perhaps this is my ignorance…if I may use an example….
I am a sole trader. I can claim a flat rate £10 per month allowable expense for using my house as my office.
This £10 is never a payment from my business bank account, nor any other account, merely an allowable expense to offset against my profit when self-assessment time comes.
I want to record this £10 expense in Crunch. But how??
My problem is thus;
If I record it as an ‘expense’ I am forced to chose how this expense was ‘paid’ which means selecting my linked business bank account. My account balance in Crunch is now £10 less. As this expense was never ‘paid’ in literal terms, there will never be a matching transaction on by bank statements when they are uploaded, so I cannot reconcile this expense. Result = my crunch account and bank account are £10 out of sync.
If I record it as a ‘withdrawal’ as you suggest, again I am forced to chose which bank account this withdrawal was made from, and thus I can only chose my linked business bank account. The result is the same as above - my crunch account will read £10 less than my bank account because no £10 withdrawal was ever actually made so there wont be a transaction on my bank statement to reconcile with this expense.
There must be a logical way of recording ‘non-purchase’ expenses if I can call them that. Expenses that are allowed to be deducted from your profit before taxation, but that aren’t actually physical purchases with associated bank transaction.
Your help is muchly appreciated. Cheers, Andy.
