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
- Go to
Cash Expenses
in the left side menu. - Enter the
Date
, theAmount
, and theCurrency
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 office suppliers, record that in theOffice Supplies
expense account. - In the
Paid through
drop-down menu, select theLoan 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 yourLoan from Owner
account by the amount you specified in the recorded expense. - From
Bank Accounts
, choose your company’s bank account and click onTransactions
to record a reimbursement. - In a new row, enter the
Date
, theAmount
, and aDescription
for the reimbursement. - In the
Classify to account
column, select theLoan from Owner
account to reimburse your owner’s loan. - Revisit your
Balance Sheet
to see the decrease in balance in theLoan 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:
- Go to your
Cash Expenses
in the left side menu, then add a new row for your expense. - Enter the
Date
, theAmount
, and theCurrency
of the expense. - Choose the
Account
where you’d want to record the expense, for exampleOffice Supplies
. - From the
Paid through
drop-down menu, select theOwner’s Equity
account to record that expense as part of your funds for the company.