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023 Do We Pay Ourselves Back for Any Personal Money We Invest in Our Business?
Description
I have a quick, bite-sized episode today where I'm giving a concise answer to a specific question about finances in your business.
Q: Do we pay ourselves back for any personal money we invest in our business?
Great question because lots of clients I work with do this, whether intentionally or not
If you use personal funds to pay for things in your business, especially when first starting out, that is technically an investment into the business because you are supporting it.
So the answer is: It depends.
You can leave it as an investment. That's totally fine & sometimes necessary to fund the start-up costs of business
You can also pay yourself back. You would just transfer funds from the business account to your personal account.
It's almost like you personally loaned the business money & now the business is paying the loan back.
If you want to learn how to categorize those investments & how to create the categories if they aren't already set up in QuickBooks, join GCWQ (Get Comfy with QuickBooks) anytime!
I hope you liked this super-focused pod today. Until next time!
Learn more about bookkeeping help from Erika here:
Learn more about the mini course Erika mentions here:
https://erikamillard.com/budget
Don't forget to download the free Monthly Bookkeeping Checklist:
https://erikamillard.com/bookkeeping-checklist
Happy Bookkeeping!