When clients pay my invoices, Monzo categorises them as Income. Shouldn’t they be categorised as Sales? At the end of the month when I transfer money from my business Monzo to my personal, to me that’s my income (although I categorise them currently as wages)
Does that sound right? Or how do other folks do it?
It’s income for your business. That’s (presumably) not all profit or all going to you at the end of the month and what you pay yourself is your personal income.
Pedantically they aren’t paying you , they are paying your business, which is an entirely separate legal entity, and account to your personal account.
When clients pay the businesses invoices for the sales that the business sends out its not your income , its the businesses income, when the business account pays into your personal account it becomes your income.
Thanks for the replies, so it should be categorised as Income not sales.