[Question] Directors Loan

[Evangline]

Hi. I am not an accountant and learning book keeping as I go so I need some guidance please.

My first question is: we registered our security company in November, over the past few months my husband has funded the business. Now, we need that money back as soon as possible so I was thinking of capturing it as a director's loan. The problem is that he used various bank cards, and cash to pay for some items, not the business bank account. Now, we have the slips to prove everything but we won't be able to prove everything through bank statements etc.

For instance, we needed control room software (paid via personal account), and flyers (paid via cash), how do I capture these transactions in sage online accounting?

Thanks in advance

[gfullard]

I follow a very similar approach.

All business expenses are claimed against the company. These are "refunded" using the owner's loan account, which builds up over time, i.e. the business owes the money to the owner.

When you want the actual cash you just pay from the loan account, clearing the liability

Greg

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