Wondering how your FundThrough advances should be categorized for book keeping? Read on!
Step 1: Record the advance!
- Create a short-term liability account called: Due to FundThrough
- Record the transaction at the time of the advance: [debit] your cash account for the amount of the advance received and [credit] your Due to FundThrough account for the same amount
Step 2: Record your Weekly Repayments!
- Create an expense account called: Funding Fees
- Record the transaction at the time of the repayment: [credit] your cash account for the amount of your weekly repayment, [debit] your Due to FundThrough account for the amount of the advance repaid, and [debit] your Funding Fees account for the fees (typically 0.5% of advanced amount)
To find out how to download a statement of your FundThrough transactions, including a breakdown of principal and fees for each repayment, click here.