New Business Set-Up - claiming expenses

Hi

I am in the process of setting up a new business and have set up a separate budget on YNAB to manage the accounts. 

I have incurred a number of costs (associated with my business set up) that I have paid using my own money and will need my business account to reimburse me these costs (and any other ongoing personal expenses associated with the business). 

How do you manage this in YNAB please?

Thank you

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  • Hey, there! Congrats on your new business! :)

    Good job creating a new budget for your business. Keeping this separate from your personal budget is solid practice.

    When you invest in your business to cover start up costs:

    • Create a category in your personal budget for the expense of investing in your business. When you invest, create an outflow transaction from the account the money is coming from and categorize it here.
    • That same amount will be entered as an inflow in your business budget. The category should be "Inflow: Ready to Assign", but you can make the payee for the money you transfer into the business "Owner Investment" so you can see on your reports how much of your income is investment versus revenue.

    When you reimburse yourself for business expenses paid with personal money:

    • Create a category in your business budget for the expense of owner drawings. When you take money from the business to reimburse yourself, categorize it here. It will be an outflow from your business account.
    • That same amount will be entered as an inflow in your personal budget, categorized as "Inflow: Ready to Assign."

    You'll want to create a strategy for noting what should be reimbursed. We have some tips here. Alternately, you can invest a certain amount in the business to support startup costs, then pay back that entire balance on a schedule to make things easier.

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  • Ditto what @Dela said. I also submit a Expense Reimbursement Statement to the business with the receipts attached of the items being reimbursed. This just helps with the paper trail and keeps things official. 

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