Expense Claims

1

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Hey Guys just wanted to clear up a confusion, all the expense claim transactions were transactions paid by me for the company, now the receipt where its $90,000 debit, its cash/capital I have put into the business. is this the right way to enter it ? I want make it so that the business does not owe me anything and that all expense claims are settled. thanks

2

The problem with your desire is that it would be incorrect accounting. The fact is you have money invested in the business, so from an accounting perspective the business owes you that money.

As for the rest of your post, I cannot answer, because you did not explain what your screen shot shows. Show the full screen with breadcrumbs at the top. If I had to guess, I would guess you are showing a drill-down on a capital account balance. If so, the receipt should be a credit, not a debit. So please show a screen shot of the Edit screen for that receipt.

3

I use three methods to deal with owner receipt/payments on behalf of a business depending on what types of controls the owners have on their business. I know some of these methods are not “sanctioned” but they work beautifully for each case:

  1. High control: owners only interaction with business is capital injections, dividends and salaries. For this I use the built-in Capital accounts feature.

  2. Moderate control: owners pay on behalf of business and get refunds. For this I use expense claims as usual.

  3. Low control: the line between owners’ funds and business funds is a blur. In this case the owner pays business expenses, receives from customers on behalf of the business, mixes personal and expense finances, etc. For that, I create a cash or bank account classify it under a control account that’s in equity. This completely avoids chasing my tail trying to figure out which payments are to be refunded or which needs to be capitalized or even what type of transaction to use.

Your case seems to be somewhere in between 2 and 3, but a bit closer to 2. You can experiment with these methods and see which one requires less work to achieve correct results. Maybe even a mixed approach could do the trick for you.