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The TWO options for paying for something business-related that is personal in nature
2 years ago
💼 When paying for something business-related that is personal in nature, it is best to try to avoid it. However, if it does occur, there are two options. The first is to record it as an owner’s draw distribution and move on. The second option is to record it as a loan receivable from the shareholder.
If the loan is paid back through reimbursement, then the loan can be closed out!
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