Business Expenses Paid For By Personal Funds

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Business Expenses Paid For By Personal Funds

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

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Re: Business Expenses Paid For By Personal Funds

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 1.jpg

 

Step 2.jpg

 

Step 2 - Enter Spend Money

 

Step 4.jpg

 

Step 3.jpg

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. 

 

Step 5.jpg

 

Warm regards

Renae


If I am responding to your query and I have helped you please kindly mark my post as a solution to assist others in the future.
Warm Regards
Renae

@renae2peas
https://twopeas.com.au/covid-19-resources/
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Re: Business Expenses Paid For By Personal Funds

Thank you so much Renae for your helpful answer. Smiley Happy

 

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

 

Regards, Robert


@Cloud_Mind 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 1.jpg

 

Step 2.jpg

 

Step 2 - Enter Spend Money

 

Step 4.jpg

 

Step 3.jpg

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. 

 

Step 5.jpg

 

Warm regards

Renae


 

 

Best regards, Robert

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Re: Business Expenses Paid For By Personal Funds

Hi Chappie

 

Happy to help if you tag me I might see your posts faster just type @Cloud_Mind 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 


If I am responding to your query and I have helped you please kindly mark my post as a solution to assist others in the future.
Warm Regards
Renae

@renae2peas
https://twopeas.com.au/covid-19-resources/
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Re: Business Expenses Paid For By Personal Funds

@Chappie @Cloud_Mind

 

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

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days

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