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Romiko's avatar
Romiko
User
5 years ago
Solved

Director Contributions

Hi,   I have done the following   1. Spent my personal money using a personal cheque and credit card to setup the company and pay for website hosting   2. Transfered my personal money from my p...
  • Melisa_D's avatar
    Melisa_D
    5 years ago

    Hi Romiko, 

     

    Thank you for your post. 

     

    Generally speaking you can record the transfer of money to the business account as a transfer funds. The Pay from account is the Director loan account and Pay to account is the bank account.
    When repaying the director, you can record another transfer funds transaction but the pay from account will be the bank account and pay to account will be the bank account. These transfer funds transactions should match the amounts actually transferred in Internet banking.
     
    Help article Transferring between accounts has the instructions on how to do this within Essentials. Additionally if you do have any concerns of which accounts to use I would highly recommend speaking to your Accountant or Financial advisor on how to record these transactions within your software. 
Melisa_D's avatar
Melisa_D
Former Staff

Hi Romiko, 

 

Thank you for your post. 

 

Generally speaking you can record the transfer of money to the business account as a transfer funds. The Pay from account is the Director loan account and Pay to account is the bank account.
When repaying the director, you can record another transfer funds transaction but the pay from account will be the bank account and pay to account will be the bank account. These transfer funds transactions should match the amounts actually transferred in Internet banking.
 
Help article Transferring between accounts has the instructions on how to do this within Essentials. Additionally if you do have any concerns of which accounts to use I would highly recommend speaking to your Accountant or Financial advisor on how to record these transactions within your software. 
Romiko's avatar
Romiko
User
5 years ago

Hi,

 

Thanks for the advice. Will try this out. My only concern is for this scenario

When repaying the director, you can record another transfer funds transaction but the pay from account will be the bank account and pay to account will be the bank account. These transfer funds transactions should match the amounts actually transferred in Internet banking.

 

If I do the above. The Balance Sheet would still show a liability that the company owed money, since repaying the directory does not reduce the directory liability account?

  • Melisa_D's avatar
    Melisa_D
    Former Staff
    5 years ago

    Hi Romiko, 

     

    My apologies I've made typo in my previous response, the Pay to account should have been the director loan account. This will clear the director loan liability account. 

     

    Please let me know if you have any further questions. 

    • DuncanS's avatar
      DuncanS
      Ultimate Partner
      5 years ago

      Romiko Melisa_D 

       

      Romiko,

       

      For fees paid to ASIC, I use a ledger called Filing Fees - ASIC.

      I understand ASIC does not charge GST.

       

      Duncan