Tracking business expenses from personal account

[Derek Atkins]

E Dodd <edodd at billiau.net> writes:

>> 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

This is what the "Employee Expense Voucher" is for.  When you use your
own personal funds to buy something for the company you can fill out
the voucher and it gets applied to A/Payable (A Liability account).
This way you can keep track of how much you owe yourself using the
aging reports.

-derek
-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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