Have been using the program for some time and loving it. Also, this forum is a godsend. So helpful.
Now I’m a bit stuck.
I have a line of credit for my business, which also includes the option of having invoices prepaid for me. I then pay back the company that has offered me this line of credit over a number of months.
I’m pretty new to accounting, and I have no idea how to reflect this…
Invoice XYZ for $1,000 is paid for me by Finstro (the company that provides that service) to my supplier.
I then repay Finstro over a period of 6 months, where I pay a set amount each month + interest/fees.
How do I reflect this in Manager? Should I set up a Liabilities account called “Finstro” with the total amount I will be paying them back (so $1,000 from the invoice + interest/fees) or how does this work to accurately reflect that the invoice is actually paid and obviously not screw up the P&L statement and BAS worksheet?
Hope that makes sense - thanks in advance for your help!