How do I account for grants and supports I receive?

How do I account for grants and supports I receive?

In your business you may receive grant funding and other social welfare supports to help your business take off.

Accounting for this income depends on the source and purpose of it. You account for it in the following way:

BTWEA / STEA

The BTWEA and STEA are not grants per se, but rather social welfare granted to those starting a new business to end their unemployment. This would not be booked into your business accounts as it is a payment made to you as a person, not as a business (i.e. you do not need to account for it, except if required to be reported in your tax return).

Grants

As these are generally received by your business, they need to be included in your income as revenue (titled ‘Other Income’) and can be accounted for as follows:

DR          Bank                                      €xxx

CR           Other Income                      €xxx