Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
So, I’ve got a bit of a situation here. My boss and his common-law partner both run their own Small Businesses. 👍
Lately, they’ve been shuffling funds back and forth to help each other out, and honestly, I’m totally lost on how to record all this. I need some real answers to a few things:
I’m looking at two types of loans: the boss lending to his own Small Business, and one Small Business lending to the other.😵
Do I actually have to book these loans, and if so, how? 🙂Should we be drawing up formal contracts and calculating interest for these? 🙂And does sales tax even play a role in any of this? 🙂
Thanks so much! Cheers!
Lately, they’ve been shuffling funds back and forth to help each other out, and honestly, I’m totally lost on how to record all this. I need some real answers to a few things:
I’m looking at two types of loans: the boss lending to his own Small Business, and one Small Business lending to the other.😵
Do I actually have to book these loans, and if so, how? 🙂Should we be drawing up formal contracts and calculating interest for these? 🙂And does sales tax even play a role in any of this? 🙂
Thanks so much! Cheers!