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Adding an expense, but treating it as a cash injection/investment
I started my own business a few months ago and have made several purchases out of my own pocket for bits and pieces. I want to add these as expenses, but in some cases, I don't want to be paid back from my company, but rather treat it as a cash injection. What's the best way to do this?
I’m unsure
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Inappropriate?Dan,
Add them as Out-of-Pocket expenses (so they appear correctly in the accounts).
When you're next explaining a payment to yourself enter a pair of explanations - one an 'Money Paid to User > Expense Repayment' of the appropriate amount and one of a 'Money Received from User > Capital Introduced' for the same amount. These will balance out to zero and you can carry on explaining the actual transaction as required.
In fact, you could enter this pair of items as Manual Bank Account entries at anytime, since they zero each other out and won't affect the bank balance.
Hope that makes sense, if not drop me a line to ed at freeagentcentral dot com and I'll endeavour to explain further...
EMPLOYEE
