Every time you pay for an expense on behalf of the business through your personal account, you are effectively creating a loan made by yourself to the company. In order to keep track of how much you owe yourself throughout the month, every time you add an out-of-pocket expense, the category Money Business owes to Director on the balance sheet increases.
Entering an OOP expense from the expenses section...
Increases your Money Business Owes to Director category on the balance sheet...
Money Business Owes to Director is effectively a liability that your company needs to pay in the future, as it owes you money for paying for the expense on its behalf.
Therefore the easiest way to keep track of your monthly expenses is to add OOP's on the fly and attach your receipts to them as you go. You can do this through the
Expenses menu option in the side bar or on mobile.
That way by the end of the month, you can make a payment from your business account to yourself for the balance of your Money Business Owes to Director category. When you make this payment, you simply categorise the payment against Money Business Owes to Director and it will clear the balance off your Balance Sheet.