When you connect your bank feed you'll probably notice some transactions that are not considered business income or expenses. If you use your bank account for personal and business transactions you'll probably have a lot of personal transactions.
In Solo there is a specific 'Archive' category for non-business transactions. When you categorise a transaction as 'Archive' it will be hidden and excluded from all of Solo's calculations.
I recommend archiving transactions rather than deleting them, this will mean you can access the transactions later.
What are non-business / personal transactions?
Here are some common examples of non-business transactions. These transactions do not need to be included in your tax returns and should be archived:
Income archive examples:
Transfers between bank accounts
Personal payments (e.g. money paid to you by a friend)
Tax refunds from IRD (e.g. GST or income tax refunds)
Money from selling an asset
Pre-taxed income (e.g. salary, wages or schedular payments. These income sources should instead be tracked through the IRD feed)
Occasional personal sales (e.g. selling a one-off item on TradeMe)
Payment refunds
Funds introduced (money you pay into the business)
Expenses archive examples:
Transfers between bank accounts
Personal payments (e.g. money paid to a friend)
Tax payments to IRD (e.g. GST, provisional tax or income tax payments. You can claim your ACC levy payment)
Purchasing an asset (the asset should be added to the Assets page and the transaction archived)
Loan repayments (you can claim the interest portion of the repayments but not the repayments themselves)
Customer refunds
Drawings (paying yourself from your business)
Tip: The general rule of thumb is that if an expense did not help you generate income, then it is considered non-business/personal.
How to archive transactions
To archive a transaction:
Click the Select a category drop down box for the transaction you want to categorise.
Select the Archive category from the drop down menu.
Click the round tick ✅ button to save the transaction.
The archive category for income transactions.
The archive category for expense transactions.
That's it, your transaction has been moved to the archive and excluded from Solo's tax calculations.
How to unarchive transactions
You can view your archived transactions at any time by clicking on the 'Archive' button next to the search bar. To view archived transactions on the mobile app, go to the filters and select the 'View archive' filter.
To undo an archived transaction, click the Unarchive button for the transaction. The transaction will then be moved back to the Uncategorised tab.