Shareholder Loans and Repays

Question

I am just beginning to learn bookkeeping for a partnership/corporation. Each of the 2 partners have paid for some start up expenses out of their own pockets. Can someone please provide the baby steps to entering these expenses into Sage Cloud Accounting? I'm not very versed in doing general journal entries at the moment and am trying to avoid journal entries as much as possible. 
 I'm thinking that I would create an 'other payment' for each expense made by a shareholder but do I set up a different 'bank account' entitled 'Due to Shareholder - Partner 1' to draw the expense from? Sorry I'm a little confused here. I used to use QB and it was a little different with the process... thanks

Erzsi_I · Accepted Answer

Hi Debbie Brant ,

Thank for reaching out. Please see our article titled: "How to Record Expenses Paid from a Personal or Third Party Account"

To record startup expenses paid by partners in Sage Accounting without using journal entries, you can follow these steps:

Create Virtual Bank Accounts: 
 
 Create a "virtual" bank account for each partner. Name it something like "Due to Shareholder - Partner 1" and "Due to Shareholder - Partner 2."

Record Expenses: 
 
 Use the "Other Payments" function to record each expense. Select the appropriate virtual bank account (e.g., "Due to Shareholder - Partner 1") when making the payment.

Categorize Expenses: 
 
 Assign each payment to the correct expense account or category. This ensures the expenses appear correctly in your reports.

Reimburse Partners: 
 
 When the business has funds to reimburse the partners, use the "Transfer Money" function to move funds from the business bank account to the virtual bank account. This settles the amounts "Due to Shareholders."

By following these steps, you can avoid general journal entries while keeping accurate track of expenses paid by each partner. Hope this helps! Warm Regards, Erzsi

Sage Accounting Canada

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