Tracking business expenses from personal account

[E Dodd]

On Tuesday 15 February 2005 06:50, Mike wrote:
> Hi all,
> Apologies for my earlier slip of the send button with a nearly blank post,
> <cringe> it had to happen on my first post to a new list....
>
> I am in the process of setting up a set of accounts for a new company. I
> will be doing many expenses out of my personal accounts, and would like
> some input on what the best way would be to track these.
>
> I've thought about combining both into the same file, but that's just too
> messy when it comes to taxes and the likes (or is it?). So I have separate
> account files for both.
>
> In theory it's simple - I spend and claim it back from the company. The
> company pays me a lump sum at the end of the month. This is kindof workable
> by setting up 'to claim' expense accounts in my personal accounts and
> (here's the first bit I don't like) entering everything twice - again in
> the company's accounts. This won't balance however, because there are
> non-expense items included in the company reimbursement such as mileage
> claims. So do I have a non-taxable income account for reimbursements? I
> would ideally like to do a reconciliation to make sure that everything is
> claimed correctly, but that seems impossible purely on account balances.
>
> Surely this must be a common scenario (and I've searched through the
> archives). Is there no simple way to track this? Any suggestions/pointers
> would be most welcome.
>
> Cheers
> Mike

I have a loan account. I loan the business money everytime I buy something 
with cash or on my credit card.
I double enter these into my personal accounts.
Mileage claims would need a separate account.
I'm working on 80% of that vehicle is business and 20% private, and each 3 
months run an extra transaction in the motor vehicle accounts in which 20% of 
the expenditure for that 3 months is 'paid' with an entry from the loan 
account.
The accountant seems to cope with my system.
Liz


-- 
I'm encased in the lining of a pure pork sausage!!