I have recently started a startup.
I am totally bootstrapping the startup, and so costs are being kept to a minimum. There is no way the company can afford to pay me my normal (or even 'discounted') consultancy rates - at the moment.
What I have decided to do therefore, is to "bill" the company on a weekly basis - reflecting the number of hours I worked on the project. The expense falls into two categories:
- Capital expenditure
- Consultancy fee
I want to defer these payments (by the company to me), until the company becomes cash positive, and then start paying off the amount owed back to myself, over time.
Can anyone provide any guidelines on how to record these transactions?
Some relevant background info:
I am based in the UK, and the startup is a limited company, and is NOT VAT registered.