How do I record interest?

Seraf enables you to record Interest Paid in Cash or Interest Paid in Stock related to Promissory Notes and Convertible Notes.

To record Interest Paid in Cash: 

• Add a transaction for Interest Paid in Cash.
  • Select the Investor / Investment Account.
  • Select the Company.
  • Select the Round of Investment (the note round to which the interest pertains).
  • Select "Interest Paid in Cash" for the Transaction Type.
  • Enter the Date the interest was paid.
  • Enter the Interest amount.
  • Enter a Memo with any important notes related to the Transaction.
  • Save your entry.

To record Interest Paid in Stock: 

• Add a transaction for Interest Paid in Stock.
  • Select the Investor / Investment Account.
  • Select the Company.
  • Select the Round of Investment (the note round to which the interest pertains).
  • Select "Interest Paid in Stock" for the Transaction Type.
  • Enter the Date the interest was paid.
  • Enter the Number of Shares into which the interest was converted. 
  • Enter the Share Price.
  • Select the stock round into which the interest converted as the New Round.
  • Enter the Share Certificate #, if you'd like.
  • Indicate if the investment is 1244 Qualified.
  • Enter a Memo with any important notes related to the Transaction.
  • Save your entry.

Learn how to calculate how much interest you earned.