Handling expenses paid by the owner
Recording a reimbursable expense paid by the owner
Watch this video on how to reimburse an expense paid through an owner’s loan or read on below:
If you pay for a company expense from your pocket and want the company to reimburse you, here’s what you should do:
- Go to expenses in the left side menu.
- Enter the Date, the Amount, and the Currency of the expense.
- 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 laptop, record that in the Furniture and Equipment expense account.
- In the Paid through drop-down menu, select the Loan from Owner account to record that expense as a liability on the company.
- 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.
- From Bank transactions, choose your company’s bank account and click on its View transactions button to record the reimbursement transaction.
- Enter the Date, the Amount, and a Description for the reimbursement.
- In the Classify to account column, select the Loan from Owner account to reimburse your owner’s loan.
- 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.
Recording an expense paid by the owner
If you’ve paid for one of your company’s expenses as part of your funding to the company, you’ll be want to record that expense in your Owner’s Equity account. Let’s see how you can do that:
- Go to your Expenses in the left side menu, then add a new row for your expense.
- Enter the Date, the Amount, and the Currency of the expense.
- Choose the Account where you’d want to record the expense.
- 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.