Hi guys!
I have gone through some of the topics on owners loans to their companies, but I have been unable to find a direct solution.
If I am an owner in a company, and I deposit money into the company’s bank account, how should this be categorized in manager?
The money may or may not be intended for reimbursement in the future.
Thank you!
Just like you would record any loan or any capital contribution.
It does not matter if loans come from banks, owners, friends, etc. Investments are recorded under equity, but loans are liabilities and you just record them as such. Just search the forum on loans and forget about that this is from owner and you will find numerous posts that will help.
If capital under equity search the forum for similar.
This is a loan you should recognize as a liability.
In many jurisdictions including your own (I’m sure), you have to file a return for any change in the equity contribution structure or amounts. If you are certain there isn’t going to be anything like that now or in the future, just keep it under loans.