Money into my account issue.

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To cut a long story short I started my own company in the automotive industry in January of this year (2017)

Now, I have an issue I regards to monies being deposited into my accounts. 

I have a client that I source vehicles for. So I will call them and say 'Vehicle X is £3000'. They then say ok and deposit £3000 into my business account to go and purchase the vehicle for them. 

I then/already arrange a price with the seller. For sake of arguments let's say we agree a price of £2500. I then with draw or pay by direct bank transfer from my account £2500 to the seller for the vehicle. I then deliver the vehicle to the client. 

That leaves £500 left from the money the client deposited into my account. 

So, can I class the £500 as profit? 

When they deposit money into my account there isn't any record or reference. They just out it in and I take a smaller amount out. Am I allowed to do it this way? 

Any help is much appreciated as I am just finding my feet and don't want to go down the right paths.

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zdkformationsservices said:   When they deposit money into my account there isn't any record or reference. They just out it in and I take a smaller amount out. Am I allowed to do it this way? 
 

You must have some deposit record from your bank when you get money, even it it's just online and not a paper receipt. Maybe print out a screen shot of that and write "payment for car x" on it. Same thing when you sent a payment. Can't think of any reason you wouldn't be allowed to do it that way if you keep good records.

Some banks allow you to make notes on your online account referencing deposits / checks issued... I know BOA Business account does... just do this and print this 1xmonth

You should post this on a UK finance site as members would have more knowledge of UK business laws.

also you should take an online basic accounting course.

Assuming US laws are similar to UK laws, yes, the GBP 500 (less any ancillary expenses) would be your profit. Most companies can't keep track of how much of each transaction is profit, so they use accounting software to take revenue, subtract expenses and costs of goods sold, and get taxable revenue.

I would not let my bank statements serve as a substitute for my accounting records.  Get yourself a basic accounting software package.

Profit = Revenue minus cost of goods sold.

Homework sucks..

Your bank account isn't an accounting ledger. You should be keeping independent records of purchases and sales of cars and expenses. Something like QuickBooks will do it. Or on paper. If you're in the U.K. there's probably VAT compliance as well.

zdkformationsservices said:   To cut a long story short I started my own company in the automotive industry in January of this year (2017)


 

  so what's the long story? 

zdkformationsservices said:   Money into my account issue.
  
I never have any issues with money into my account.  In fact, I welcome it.

insertfunnynamehere said:   also you should take an online basic accounting course.
  I would also suggest a course in English, since you seem to have difficulty constructing comprehensible sentences.

Chris.

n/m

The actual profit is less than $500. The time you spent in negotiating and in the pickup and delivery are part of your costs. You need to document all of that as well.

rsuaver said:   The actual profit is less than $500. The time you spent in negotiating and in the pickup and delivery are part of your costs. You need to document all of that as well.
  Your time is not a cost/expense. The electronic systems used to negotiate would be an expense. The vehicles/mileage used to pick up or deliver cars would be expenses.

Terrorists getting support / suggestions from an internet forum.... wow!
'cuz thats the only thing possibly going on here...

Technologist said:   Terrorists getting support / suggestions from an internet forum.... wow!
'cuz thats the only thing possibly going on here...

Wait, I thought the guy said he was blowing things up for the profit?  Aw crap...



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