Loaning money from business as sole trader

1

I am an Australian sole trader. I know that i can draw from my business account, however, I want to keep the money i earn for my business strictly for my business. It is only a low paying side gig but it pays for my phone, internet and allows me to purchase gear upfront and invoice the client later.

Sometimes however i do have to use it, Like when i lost my personal bank card. In these circumstances i want this to be a loan to myself and pay it back from my regular works earnings.

What is the proper process in Manager to issue a personal loan (so to speak). At present i do a Personal Drawing transaction but what is the opposite process to restore that loan to my business account so that it doesn’t confuse the books.

Thanks in advance for any help

2

Just enter a receipt for the money you pay back and allocate it to whichever equity account you took the “loan” from. So, for example, if you used the business bank card for a purchase, that payment might originally have been posted to Owner’s equity. Or, if you are using Capital Accounts, it could have been posted to your capital account as Drawings. The receipt for repayment should be posted to Owner’s equity or your capital account as Contributions.

3

Thanks Tut,

After wandering in the direction your pointed me in i eventually found the steps required to do it in the Manager software.

Really appreciate your help.