more-arw search

Q&A Forum

Entry of owners' time hours without been employees

I managed a small company with owners requesting that their hours spent weekly on the business be recorded in the accounting software as a liability to the company.

They are not employees but are owners of the business.

I will appreciate guidance.

Thanks

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

You don't say what the structure of the company is (LLC, Partnership, C-Corp, other).

Unless they are accruing salary, there is no accounting transaction that I can think of....

Salary is only accrued in the C-Corp. The partnership has a draw, but in any event they owe on their %'s based on partnership agreement (same for LLC).

I've never heard of an agreement based on "hours spent", but who knows. Use a Time and Billing software to record time, and at the end of the period you can run a report (managerially based).

204 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.