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Nick1970's avatar
Nick1970
User
10 months ago
Solved

Payment to Director for personal funds used to start up business

Hello community. 

In very simple terms could someone please explain how I report payment back to Director of personal funds used to start up business ?(approx Aud $8000). Is it a simple bank transfer entry or more involved?

Thank you in advance. 

Nick 

  • Celia_B's avatar
    Celia_B
    10 months ago

    Hi Nick1970,

     

    Thanks for getting back to us. 

     

    In that case, I would recommend speaking with your advisor or your accountant as they can provide you with more information regarding the process.

     

    Let me know if you need further assistance. We are happy to assist you. 

     

    If my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.

     

    Thanks, 

    Cel

     

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  • Celia_B's avatar
    Celia_B
    MYOB Moderator
    10 months ago

    Hi Nick1970,

     

    Thanks for your post. There are a few separate ways of handling this and it is best to discuss which way suits your business with your accountant. Creating a loan liability account is certainly one of the common ways of recording these purchases.

     

    The first thing you need to do is to create the liability account by clicking on your business name>>select Account List and click add new. In the type field, select Credit Card as this makes the account available as a Pay from/to account when recording transactions. 

     

    When you record a purchase paid for by personal funds, change the Pay/from the field in Spend Money or Pay Bills to the loan liability account. When the business reimburses you record a transfer funds transaction with the transfer from the account being the business bank account and the transfer to the account being the loan liability account.

     

    I hope I answered your questions. If you need further information about this, please feel free to post again. We are happy to help you.  

     

    If my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.

     

    Kind Regards, 

    Cel

     

    • Nick1970's avatar
      Nick1970
      User
      10 months ago

      Dear Celia 

       

      Thank you so much for the detailed information, greatly appreciated. As I have already input the Bills as paid, about 50 items in total, for around $10,000, is this OK? 

      • Celia_B's avatar
        Celia_B
        MYOB Moderator
        10 months ago

        Hi Nick1970,

         

        Thanks for getting back to us. 

         

        In that case, I would recommend speaking with your advisor or your accountant as they can provide you with more information regarding the process.

         

        Let me know if you need further assistance. We are happy to assist you. 

         

        If my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.

         

        Thanks, 

        Cel