When is an expense considered privately paid?
An expense is privately paid when you use personal funds to pay for a business expense.
For example:
A business lunch paid with your personal card
Office supplies paid from your personal bank account
Software or a subscription charged to your personal card
A business purchase paid in cash using personal funds
Always keep the invoice or receipt for the purchase. You will need this to correctly record the business expense and any applicable VAT.
How do you record a privately paid business expense in Shine?
Because the payment was not made through your business bank account, there will be no corresponding bank transaction in Shine.
You can therefore record the expense manually in your accounts.
Go to Accounting in the main menu.
Create a new accounting entry.
Enter the date of the business expense.
Add a clear description.
Select the appropriate expense account for the purchase.
Record the amount against an owner contribution or owner's current account, depending on your business structure and accounting setup.
Record any deductible VAT based on the invoice or receipt.
Review the entry and save it.
This records the business expense in your accounts while also showing that you paid for it privately.
💡 Tip: Always keep the original receipt or invoice, even when you paid for the purchase privately. Without valid supporting documentation, you may not be able to deduct the expense or any applicable VAT.