Directors Loan
Hello, I am new to MYOB in Australia. The director of the company has basically loaned the company a lot of money to stay afloat. I am wondering if this can be written in the MYOB system as a 'service invoice' which the company pays him back in instalments. The accountant has recently done his tax return 24/25, and is saying the company made a profit in the last financial year and he owes tax - which totally baffles me because he is still owed money from his loan? It feels like he is paying tax on money that he has been already taxed on. I hope this makes sense! Thanks in advance.
Hi Jaye333
The loan is a liability, not an expense, hence not deductible. Many small business directors lend their companies money even though the business many be profitable.
Your accountant should explain how to get the loan into the MYOB file. Cr a Liability account, Dr the bank account.
