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
Entry of owners' time hours without been employees
Answers
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).