Who this article is for:
Directors of limited companies
There may be situations when you are trading where you need to top up your business account with money to be able to buy some equipment or to spend on ongoing business expenses.
In general, the best way to treat this amount would be by categorising it as 'Money Business Owes to Director'.
This will then show as an amount that the business owes back to you. In the future, once the business generates its own revenue, you will be able to pay yourself back the amount. In this situation, you would use the same category as above.
Using a simple example:
On incorporation, I pay £1,000 of my own money to fund business expenses before the company is generating revenue
I categorise this as 'Directors loan'. This will then show as an amount that the business owes me back
I spend this money on various purchases
After a few months, the business has generated enough cash to repay me the balance
I repay myself the £1,000 to my personal account and categorise this as 'Directors loan'
The balance showing in Ember as owing to the Director should now be £nil