I arranged my start-up capital through a win-win loan. How do I enter this? First, a large sum of money was transferred to my business from a private person, and now I am paying it back monthly.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
I arranged my start-up capital through a win-win loan. How do I enter this? First, a large sum of money was transferred to my business from a private person, and now I am paying it back monthly.
Hi there,
Actually, everything from capital (i.e. the amount without taking interest into account) is totally irrelevant for the accounting of a sole proprietor. It is what you do with the money from the win-win loan that has an impact on your accounts, i.e. the purchases of materials, services, investments, etc.
Those documents will have an impact, but the financial transfer of the win-win loan will not.
But that was for the capital; you also have the interest from that loan, which you can include. You can simply enter it (purely the interest) as expenses. I think there is a cost category for this, something like financial costs or something similar. You can then enter this as an expense on a monthly basis or even once a year for all interest from that year. Hopefully that clarifies things a little.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.