Employee Expense Reports

[Maf. King]

On Tuesday 27 October 2009 19:03:19 Don Quixote de la Mancha wrote:
> I need to know I should account for out-of-pocket expenses that my
> company's employees (mostly myself) pay on behalf of the company.
>
> I have a corporate checking account now so I shouldn't have to do this
> much anymore, but I wasn't able to get that checking account until I
> incorporated and got my Employer Identification Number.  I just
> prepared monthly spreadsheets for all of my startup expenses, and the
> total came to $750.
>
> What I hope I can do is record the specific merchants that I paid, the
> proper account for each transaction - such as technical books, web
> hosting, and the fee for my incorporation - but with the result that a
> liability will be recorded that is owed to me personally.
>
> I expect to continue paying most of these merchants directly from the
> company's checking account; it would be helpful if all of the payments
> to them could be listed in one report, whether I paid them out of my
> own pocket or the company paid them.
>
> What I'm not able to see quite yet is how I can record the actual
> recipients of my payments, but with money being owed to me personally.
>
> Thanks again for all your help.  I am very excited about my new
> company, but want to take care not to screw it up this time.


Hi DQ

I have a liability account for items which I have bought for my business (with 
the expectation of a refund sometime...)

eg. If I purchase a book, it is a transfer between Expenses:books and 
Liabilities:MyExpenese.

Later on, I get a refund (between checking & Liabilities:MyExpense) which 
zeroes out the liability balance owed to me.

If I want a report on how much the business has spent on books, then a 
transaction report on the expenses:books account does that.

HTH,
Maf.