Expenses

Handling expenses paid by the owner

If you pay for a company expense from your pocket, here’s how to book it.

Learn by watching

Watch this video on how to book an expense paid by the owner, or read on below.

Handling expenses paid by the owner

Expense paid by the owner, to be reimbursed

Step-by-step instructions

  1. Go to Cash Expenses in the left side menu.
  2. Enter the Date, the Amount, and the Currency of the expense.
  3. From the Account drop-down menu choose the account where you want to record that expense. For example, if you’ve paid for an employee’s office suppliers, record that in the Office Supplies expense account.
  4. In the Paid through drop-down menu, select the Loan from Owner account to record that expense as a liability on the company.
  5. Go to your Balance Sheet to see the increase of balance in your Loan from Owner account by the amount you specified in the recorded expense.
  6. From Bank Accounts, choose your company’s bank account and click on Transactions to record a reimbursement.
  7. In a new row, enter the Date, the Amount, and a Description for the reimbursement.
  8. In the Classify to account column, select the Loan from Owner account to reimburse your owner’s loan.
  9. Revisit your Balance Sheet to see the decrease in balance in the Loan from Owner account by the amount your company’s bank account reimbursed you with.

Expense paid by the owner, to be considered as contributed capital

Step-by-step instructions

If you’ve paid for one of your company’s expenses as part of your funding to the company, you’ll want to record that expense in your Owner’s Equity account. Here's how you can do that:

  1. Go to your Cash Expenses in the left side menu, then add a new row for your expense.
  2. Enter the Date, the Amount, and the Currency of the expense.
  3. Choose the Account where you’d want to record the expense, for example Office Supplies.
  4. From the Paid through drop-down menu, select the Owner’s Equity account to record that expense as part of your funds for the company.