Own contribution

Thank you for your question!

Actually, such a construction (loan from a person) makes no difference to your accounting, because you are working with a sole proprietor. Regardless of which bank account that money is in, someone else's bank account, your own private account, or the bank account of your sole proprietor, it makes no difference to your accounting. In other words, it has no impact on your figures.

So it doesn't matter if someone has transferred money from their bank account to your business account as start-up capital or, for example, as a loan. The impact on your figures comes from the purchases you make with that money. But the extra money you have in your bank account via a loan, which you then systematically repay, makes no difference to your accounts.

If, for example, you were to take out a bank loan and pay interest on it, this would have an impact on your accounts. But only the interest you paid; the refund of the capital to the bank has no impact on your accounts. The impact only arises when you use that money to make a purchase and include the purchase invoice in your accounts.

Thank you for your answer!

How should this be processed in the accounts? Because my expenses are now much greater than my income? So I don't have the right balance?Yes, you really have to think completely separately from your bank balance. In a sole proprietor, it doesn't matter where the money is, how much is in the bank account, what happens to the money, etc. That has no impact whatsoever on your accounts in a sole proprietor.

As a sole proprietor, you only look at the invoices, receipts, tickets, etc.

So the fact that you have much more expenses than income is indeed correct. Where that money comes from is completely irrelevant. That loan between mother and daughter has no impact on your accounts. What happened to that money, in other words the purchases that were made with it and the invoices that you stop in your accounts, do have an impact on your accounts.