Forum Discussion

BEacct's avatar
BEacct
Cover User
3 years ago

How to record owners personal expenses

Hi there,

 

We have a small sole trader business.  I need to account for expenses paid for from personal funds but don't need to reimburse.  

 

I have Owner Drawings and Owner Contributions set up and am comfortable with how they operate.  I am a little confused how to record the expenses e.g. for GST reporting, but allocate the funds back to the business.

 

Any help appreciated

  • Hi

    Can I suggest that you set up a bank account called Owners Funds.

     

    Anything that you pay from it can be paid for from that account - as you would normally but just changing the bank at the time of transaction

     

    This will record your gst etc and provide the transaction details

     

    You or your accountant can then journal that account to owners contributions at any time

     

    Hope that helps

     

    Lisa

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    Hi

    Can I suggest that you set up a bank account called Owners Funds.

     

    Anything that you pay from it can be paid for from that account - as you would normally but just changing the bank at the time of transaction

     

    This will record your gst etc and provide the transaction details

     

    You or your accountant can then journal that account to owners contributions at any time

     

    Hope that helps

     

    Lisa

    • BEacct's avatar
      BEacct
      Cover User

      Thank you  Lisa,

       

      That has workd beautifully, much appreciated

       

      Karen