When you’re the director of a limited company there may be times that you need to put your personal money into the business, or withdraw money from the company for your own personal use, which isn’t a salary, dividend, or expense repayment.
Whether you’re lending or borrowing, it’s essential that these transactions (called director’s loans) are recorded in your bookkeeping – in what’s known as a Director’s Loan Account, or DLA.
It’s no secret that we’re big fans of simplifying bookkeeping here at Pandle HQ, so our latest update makes managing your DLA in Pandle even easier. Introducing Bank Imports for Director’s Loan Accounts (trying saying that fast three times).
Recording director’s loans in your Pandle bookeeping
When you set up a limited company in Pandle, a Director’s Loan Account is automatically made for each director in the business. These DLAs are created as bank accounts and work much the same way, showing how much money each director owes to (or is owed by) the company.
Until now transactions could only be entered into a DLA in Pandle manually, which can be time consuming and increases the risk of making mistakes. So to make things easier, this Pandle update means you can also enter DLA transactions using our Bank Imports tool. Hurrah for saving time!
Back to basics: What are Bank Imports?
Rather than painstakingly entering bookkeeping transactions manually, Bank Imports enable users to import their transactions in bulk.
You can download your transaction information as a CSV file from your bank, and then upload that information straight into Pandle. Our user guide explains the process in more detail.
Importing transactions to your Director’s Loan Account
Click ‘Enter Transactions’ and select the Banking tab to see a list of accounts set up in Pandle, including any Director’s Loan Accounts. When DLAs are created in Pandle, they’re automatically set up for manual entry by default.
To start using Bank Imports for your DLA, just select the ‘Entry Method’ next to the relevant account, and then use the dropdown menu to select a new entry method.
Now you’ll be able to import transactions into your DLA with our Bank Import feature, reducing the risk of any data entry errors (and saving time in the process). Double bonus.