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Dragontec's avatar
Dragontec
User
3 years ago

Recording personal transactions as owner drawings setup

G'day all

 

looking for some help many variable answers that I have found but still left confused 😐 

 

I am a sole trader

I have just started a business

I need to enter expenses bills and receipts for items purchased for the business

 

from what I have learnt I believe that this is done by the following

 

set up an account under credit cards 

label it owner drawings as I am a sole trader (I am not a company so director loan I believe is not appropriate)

unsure as to the category for liability I believe it is current liability ? 

Goal to enter bills and receipts For purchases made Office equipment  etc

and when the business has earnings from invoices issued make repayments to myself for the start-up cost

 

any help would be much appreciated I know there are many topics on this but I have not been able to find something Pacific in regards to soul traders mainly companies

 

I am confused if it is a liability account only if you are a company director loan

 

 

 

 

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi Dragontec 

     

    Thanks for your post. As we're not accountants we're not able to give specific advice on your account set up or allocating transactions. I would recommend checking this with your accountant.

     

    Typically, Owners Drawings and Owners Contributions are equity accounts with contributions being money paid into the business. One way to handle business expenses paid for using personal funds would be to create a bank account called personal account. When recording a Spend money transaction you would select the personal account in the Account field and allocate the amount to the Owners Contributions account.

     

    However, I would check with your accountant to ensure your set up and recording these amounts is correct for your business.

     

    Please let me know if you need further help.

     

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