Replenishment of working capital: sources, accounting, bookkeeping entries

Quite often in the process of doing business, there are times when the company begins to badly need additional money. In this case, the company's management can lend money to a credit institution or use a commodity loan. But as a result of such actions the enterprise will be obliged to pay a certain percentage, which is assigned for the use of borrowed funds. How much replenishment of working capital in this way is beneficial to the enterprise, and what other options are there for stabilizing the difficult economic situation of the company?

How to replenish the shortage of working capital most profitable

Faced with such a problem, any company seeks to obtain a loan on more favorable terms, since the additional costs do not contribute to the restoration of economic stability.

The loan for replenishment of working capital is easiest to get in the bank. But is it worth hurrying with such a step? In addition, the company does not always need cash. Sometimes for a continuous running of the economic process, only a certain raw material resources or spare parts are missing. In this case, it would be wiser to take advantage of a natural loan.

There is another way to get help - it is the replenishment of working capital by the founder. This option is considered the most preferable for the company.

Company foundation assistance

Seeking help from the founders' meeting is a priority decision. You can replenish the missing funds by contributing to the authorized capital, in the form of free financial assistance and by increasing the property base. In order to replenish the working capital with the founder, it is necessary to have the consent of 2/3 participants. By decision of the general meeting, amendments are made to the constituent documents. They prescribe a new value of deposits in proportion to the share of each participant. Deposits, which are paid additionally, must be credited to the account not later than two months from the moment of signing the decision.

After the final replenishment of working capital will be formalized in the form of additional agreements to the constituent documents, it is necessary to submit to the tax inspectorate an application for registration of the changes made.

Pros and Cons of Investment Aid

The company has the right to use the funds of the founders at its discretion, with no tax consequences. This form of assistance has its pros and cons. The positive aspect is that the replenishment is not subject to tax payments, as the funds of the founders do not participate in the taxable base. Founder support is of an investment nature and is not related to the sale of goods and services.

Disadvantages of such a loan can be considered that all changes in capital have to be registered in the tax. Also, with additional introduction of working capital, there is a violation of the balance between net assets and the amount of authorized capital.

Getting help in the form of a bank loan

To receive financial assistance, the company has the right to use the bank's credit facilities. When concluding an agreement, the conditions for the provision of funds and the terms for their return are stipulated. This replenishment of working capital has its expenditure side, which is expressed in the form of accrued interest. In the taxable base for income tax such expenses are taken into account with a certain restriction. Accrued interest can be written off at the rate, which is set depending on the size of the current refinancing rate.

The advantage of this loan is that the bank is a reliable partner, which always operates within the framework of the law. The disadvantages include a large number of documents that you have to collect when you make a loan, interest payments, as well as additional costs associated with opening a loan account. Expenses arising from the use of borrowed funds are accounted for as part of non-operating expenses.

Commodity loan from the supplier

There are situations when banks refuse to provide a loan, or the company needs not in cash, but in raw materials. In this regard, the enterprise begins to look for alternative sources of replenishment of working capital. Strangely enough, the solution to the problem can be simple. Sometimes it is enough for a company to report its difficulties to business partners, namely to those contractors that are engaged in the supply of the necessary raw materials.

Such lending is called commercial and has its advantages. Participants in the transaction agree on a certain delay in payment for the supplies. Contractual relations are documented and provided either on a no-charge basis or with interest accrual. Indirect replenishment of working capital is formalized in the relevant primary documents. The counterparty is obliged to issue an invoice for the amount of accrued interest.

How to make up replenishment of working capital, posting

Depending on the type of financial assistance in accounting, certain transactions are made. If the financial injections are provided in the form of gratuitous assistance of the founders, the accountant makes posting to debit account 51 in correspondence with 98 accounts. Then the received sum is written off in the credit of the account 91.1 for a recognition of gratuitous help by other income. With the receipt of property assistance, replenishment of working capital (postings Д-т 08 К-т 98) is drawn up depending on the purpose of the values.

For registration of credit money, accounts 66 and 67 are applied. The funds received on the settlement account are accounted for in the following entries: Д-т 51 К-т 66 (67). Replenishment of working capital due to borrowed money allows the company not to interrupt the production process and in time to fulfill contractual obligations to customers.