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Level 1

Reporting Loans or Cash Flow inputs - Best Practice

Reporting Loans or Cash Flow inputs - Best Practice

 

- Over the past year I have received cash flow loans for my business from my family and spouse. What is the best way to record these inputs? There is no loan contract and the debts are forgivable so I wonder, are these loans or investments from myself?

 

Is the spouse loan a loan to myself? 

Should it affect the dividend I pay myself - this is essentially all the money I receive from my company.

 

Are these loans recorded as Assets, Equity or Liability? If Equity do I need to assign shares?

 

Tax Year 2019

2 Comments
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Level 6

Reporting Loans or Cash Flow inputs - Best Practice

Hey LearnerMB,

 

It's great that you're reaching out to make sure everything gets recorded correctly. It's crucial for these types of loans to be recorded in such a way that is compliant with your local tax laws, which is something your accountant can help with. They'll be able to determine how to approach this to avoid causing issues with the government. Check out our Find an Accountant page to find a QuickBooks pro in your area. You can enter in your postal code to find accountants near you, and filter for the product you're using.

 

Don't hesitate to reach out any time you'd like help!

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Level 1

Reporting Loans or Cash Flow inputs - Best Practice

That's a great little bit of self-promotion - no doubt you are an accountant. You are not answering the question so why pretend to?