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The director of our non-profit transfers money from her personal account to the non-profit account when don't have enough funds to pay invoices. When we have enough in donations I try to transfer money back to her personal account. What accounts should be used, how do I record this?
The director is loaning money to the NFP, so that is a company asset account. Use that asset account as the source account for the deposit
You pay back the loan by using that same asset account as the expense for the payment
A liability account sounds right to me. Recording these funds as a long-term or short-term loan hadn't occurred to me. Thank you for your input.
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