Glossary
Owner loan
Definition
An owner loan is money the owner has lent to the company, or money the owner has taken out and must return. The balance is a liability when the company owes the owner, and an asset when the owner owes the company. It is settled when the company pays the owner back.
Example. If the owner pays a €300 software bill from a personal card, the company owes the owner €300 as an owner loan.
Why it matters for your company
Paying a company cost from your own money is common in a small company. Recording it as an owner loan keeps personal and company money apart in the books.
Where you see it in Sapita
On an expense you paid with your own money, where you mark that the owner paid it.