Business Expenses Paid For By Personal Funds

[Chappie]

Hi all

We are a small start-up business (limited company shareholder-employee married couple arrangement in New Zealand) so we've got some business expenses that have been paid for from our personal funds using our private cheque account or credit card.  

Could someone please provide a step-by-step guide on how to account for these in MYOB Essentials so they are linked to the business?

Thanks very much in advance,

Robert

[CloudMindAcc · Accepted solution]

Dear @Chappie

Firstly you need to set up a G/L Account Code called Loan - Business Owner with the type being a credit card. By making the type a credit card it will allow you to post spend money/or purchase payments for your purchases where you have used personal bank accounts or credit cards.

If I have given you the soluition please kindly mark my post as a solution please to assist others who may have a similar query in the future.  

See below screen shot examples of how to do this:

Step 1 - Create G/L Account

Step 2 - Enter Spend Money

Step 3 - You can also enter your purchases via the purchase menu (rather than spend money) and just select the from Account to be Loan - Business Owner.  Personally I use the purchase menu where possible for larger bills or supplier bills as it allows you to track movement better than spend money. 

Warm regards

Renae

[Chappie]

Thank you so much Renae for your helpful answer. 

I will have more queries on other topics over the coming weeks and months; looking forward to hearing from you hopefully.

Regards, Robert

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@CloudMindAcc wrote:

Dear @Chappie

Firstly you need to set up a G/L Account Code called Loan - Business Owner with the type being a credit card. By making the type a credit card it will allow you to post spend money/or purchase payments for your purchases where you have used personal bank accounts or credit cards.

If I have given you the soluition please kindly mark my post as a solution please to assist others who may have a similar query in the future.  

See below screen shot examples of how to do this:

Step 1 - Create G/L Account

Step 2 - Enter Spend Money

Step 3 - You can also enter your purchases via the purchase menu (rather than spend money) and just select the from Account to be Loan - Business Owner.  Personally I use the purchase menu where possible for larger bills or supplier bills as it allows you to track movement better than spend money. 

Warm regards

Renae

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Best regards, Robert

[CloudMindAcc]

Hi Chappie

Happy to help if you tag me I might see your posts faster just type @CloudMindAcc and I will see your posts faster.   Although I am off overseas for XMAS so might be offline for a few weeks but there is heaps of other super users on here that will be able to help you as well. 

Warm regards

Renae 

[DuncanS]

@Chappie @CloudMindAcc

Chappie,

Renae has given you a very good answer.

A mute point would be Loan - Director should be called Loan from Director.

In Australia, a Loan from Director can be repaid by the Company at any time, pending Cash Flow, without any tax implications.

There are tax implications if there is a Debit Director's Loan Account ie Loan to Director.

Duncan