Loans and funding
Money put into your company is not sales. Max keeps funding, loans and interest apart from revenue, and asks you before he counts any deposit as income.
Say what a deposit is
Deposits into a holding account, and deposits that look like funding (a wire, a Zelle or Venmo from a person, a lender's name, a round amount), are held out of the books until you decide. A deposit counts as income only with evidence: a Stripe payout, a matched invoice, or you naming the customer.
- Open Daily routine, then Needs you.
- Pick what the deposit is: Customer payment (Max needs the customer's name), Investor, Advance on the founder's note, Loan from a lender (name the lender), Transfer or Refund.
- Tap Apply. Or ask Max in chat and tap the card.
Other deposits with no evidence stay as "Uncategorized deposits". They can still be matched to an invoice, and Max asks what they are.
Loans & Liabilities
The tab is your loan register. For each lender it shows principal, interest accrued (posted, and earned since the last posting), interest paid, the next cash interest due, and the notes on file with their status, such as "draft or unsigned". If it says "No loans on file", ask Max to record a loan.
Total owed today is principal plus interest earned to date. The balance sheet shows only posted interest until you post the accrual.
Record a payment to a lender
Ask Max to record a payment and split it into interest and principal. The parts must add up to the payment. Tap the card to confirm.
Post quarterly interest
- After a quarter ends, Needs you shows "Post interest accrued through ...". You can also use Post it on Loans & Liabilities.
- Check the card. It shows each lender's amount. Interest is simple, at each loan's own rate, counted by actual days over 365 from the date of each advance.
- Tap Post it.
Posting also writes each lender's quarter statement and a draft row for the founder note's quarterly exhibit, for the founder to initial. Accruals only go forward. An advance recorded late is caught up in the next posting, so a closed quarter doesn't change. Max also reminds you of cash interest due within 14 days.
A posted accrual isn't deleted. A mistake is fixed with a dated reversal.
Loan documents
Ask "Propose loan corrections." Max reads your reviewed balance sheet and the notes in your Drive (the Accounting folder and its Loan Documents folder) and shows one card per lender with principal, first advance date, interest start, rate, schedule and each document's status. Where documents disagree, he lists the conflict for your CPA or counsel and follows the reviewed balance sheet. He doesn't pick a side.
Founder note
Company costs paid on a founder's personal card, and money the founder puts in, become advances on the founder's note. See Expenses for the report.
Not yet
- Opening balances can't start after invoices or bills already in Max. Include those in the opening figures.
- Splitting a Stripe payout into an invoice payment, the fee and other revenue. While a card-paid invoice has no bank line yet, payout deposits are held under Needs you instead of counted as revenue. If the payout doesn't include it, tell Max it's revenue.
- Tax and legal treatment of loans. Your CPA and counsel decide.