Owners Capital Investment

SoEighty7SoEighty7 Member Posts: 5
When I categorise an investment as owner investment/drawing, which was deposited via bank transfer into the business account, the balance sheet shows the money introduced increases the net profit through sales, meaning I'll have to pay corporation tax on that amount, along with my regular sales.

Are there specific accounts/categories that I need to use to ensure the money I invest in my business doesn't show as profit the same way sales do?
edited October 21, 2020 in Accounting Technical Support

Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey @SoEighty7 ! Do you mind clarify how you have the investment recorded in Wave? Also, do you mind sharing a screenshot(s) for me as a visual aid? Before doing so, please redact and sensitive information from the screenshot(s).

    When recording an Owner Investment in Wave, you will want to select the account that the funds have been deposited into. Then, the selected transaction category should be "Owner Investment/Drawings". We have a great Help Center article on this as well that provides more insight. Check it out here: How to record personal transactions from a business account

    edited October 29, 2020
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