Did you borrow from a bank, a SACCO or a friend? Did you put your own money into the business? Financing records it as what it is. The money appears in your account and as what you owe, never as income, and each repayment is split into interest and the loan itself for you.
Create your account Set-up guidesWhat you do, and what Meku does with it.
Financing → Add: who lent it, how much, when, and which account the money went into. Choose the type: Flat (interest on the full amount for the whole term), Reducing (interest on what is still owed), or Just a total (borrow 500, repay 600).
Puts the money into that account and shows the loan as not yet repaid under Financing. Your profit does not change, because nothing was earned.
On the loan's page, type each repayment when you make it.
Splits it. The interest becomes an expense, and the rest reduces the loan. Each payment keeps its two parts.
Is it a grant, a donation or your own money? Use the same page.
Records each as what it is. A grant or a donation is money you do not pay back. Your own money is capital.
Because you have to pay it back. If you record it as income, a bad month looks good and your profit is not true. Meku puts it where it belongs.
Ask them. In Tanzania both are common, and over a year the difference is almost double. Microfinance companies and SACCOs usually quote flat. Banks usually quote reducing.
Simple to use. Works on the web, iPhone and Android.
