Directors Loan Account

Often when we go through a set of accounts with a client, one of the areas that causes the most confusion is the Director’s Loan Account. What’s is a directors loan account? Directors’ relationships with their own company are unique because they are in the privileged position of being able to influence their company’s actions and activities in a way that others such as employees, suppliers and customers cannot. Therefore, a director loan account is set to record and manage the transactions between