How to Record Fundbox Transactions: Best Practices

The advances you receive from Fundbox, as well as your weekly repayments are ACH transactions. While there are many ways you can choose to record these transactions in your bookkeeping software, we recommend following the Double-entry Bookkeeping system in which bank transactions are entered twice to keep your books balanced.

Before logging any transaction, please make sure you create the following entities in your accounting software:

  1. A vendor in your bookkeeping application named "Fundbox."
  2. A dedicated liability account for Fundbox transactions and label it accordingly (i.e. "Fundbox Cash Advances")
  3. An expense account for Fundbox transactions and label it accordingly (i.e. "Fundbox Fees")

When you clear an invoice

The transaction should be recorded as:   

  1. An increase to your cash account to reflect the deposit into your bank account and
  2. A corresponding increase entry in the liability account, to reflect the amount owed to Fundbox.

When you make a payment

The transaction should be recorded as:

  1. A withdrawal from your cash account which reflects the total payment made,
  2. An increase in an expense account labeled "Fundbox Fees" to reflect the fees and
  3. A corresponding decrease entry in the liability account, to reflect the advance repayment amount.

 

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