How do I Record a Lease Contract in Gekko?

Created by Dennis van Rooij, Modified on Wed, 28 May at 3:04 PM by Dennis van Rooij

Keeping track of a lease contract in your accounting software, such as Gekko, can raise some questions. Below we explain step by step how to properly record it, so your annual financial statements are accurate and your bookkeeping stays organized.


1. How do I record the investment made through a lease contract?

If you've made an investment through a lease, you enter it as a regular investment in your Gekko account.

For more information, please read our support article about Investments (in Dutch).


Then make sure that:

  • The investment is correctly entered (you can check this with an advisor or bookkeeper).

  • The investment is marked as paid. This is important! Only then will it appear correctly in your annual financial statement.

Tip: If you haven't done this yet, you can easily adjust the payment status on the cost page of Gekko.


2. How do I report the lease contract itself in my financial statements?

In addition to recording the investment, you also need to report the lease agreement as a liability. You do this at the end of the financial year:

  1. Go to your financial statements via this link: getgekko.com/en/financial-statements

  2. Scroll down to the section called ‘Other debts’.

  3. Enter the outstanding amount of your lease agreement as of the end of the year.

This amount is the remaining balance you still owe on the lease.


3. How do I record the monthly lease payments in Gekko?

Each monthly lease payment consists of two parts:

  • Principal repayment: The part used to pay off the investment.

  • Interest: The cost of financing the lease.


The repayment portion is already covered through your investment entry and does not need to be recorded separately.


The interest portion has to be recorded as a cost. You can do this at the end of the year or per payment, depending on your preference. The interest is Exempt from VAT.


4. Summary: What steps should I take?

StepAction
1Make sure your investment is correctly entered and marked as paid in Gekko
2Report the outstanding lease amount under ‘Other debts’ in your financial statement
3Log the interest portion of your lease payments as a separate cost in Gekko

Need help or want us to double-check things with you? Don’t hesitate to reach out to support@getgekko.com 


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