Owners Funds

Vanessa1606

Hi All,

 

I am a sole trader and are contributing funds until the business is more profitable. How do I set up the chart of accounts so that expenses are paid from my funds and then can be reimbursed back to me?

 

Thank you

Yanike_S

Hi @Vanessa1606 

 

Thanks for your post. Generally speaking you would use an equity account like Owners drawings to take money out of your business and Owners contribution account to add money to your business. Usually your business expenses would be allocated to expense accounts.

 

However as we're not accountants we're not permitted to advise on the accounts and tax codes you would need to use. As such, you will need to speak to your accountant to get the correct advise for your business.

That being said, I do encourage other members of the Community Forum to share their experience and financial knowledge.