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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.



Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

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).


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