Entering & Recharging Out of Pocket Expenses

[QFMathew]

Hi @Mike007

I think there may be a quicker way to do this using QuickFile, although this way is how I would do it; other users may have suggestions (and they can freely add these to this topic if they wish).

1. When you have the receipt, write the name of the client on the top (for your reference)

2. Use an app such as ‘CamScanner’ and photograph the receipt as it is (front and back)

3. If you use Dropbox and it’s linked to your account, add it using your phone to Dropbox to import into QuickFile. Otherwise, set up the “email your receipts” feature, and email them in.

4. Create a generic supplier in QuickFile, something like ‘Client Expenses’. As long as everything can be matched up if asked by HMRC, you should be fine

5. On a regular basis (for example, each Sunday), go through the receipt hub and create a new purchase for each receipt linking them to the above supplier. Perhaps even set the description to something like “Supplier - Brief Description”, e.g. “Costa Coffee - Hot Chocolate & Tea”

6. Once you’ve done them, you could even use our rebilling feature and rebill to your client, without entering any more data - just confirm and send! This also gives the client a complete breakdown too

@Mike007

All “out of pocket expenses” are paid for by me personally and repaid back to me from my business bank account on a monthly basis. So on my bank statement, I have a “drawings” reference which aligns with reimbursement.

You would use either your proprietor drawings account, or director’s loan account (depending on whether you are a sole trader or limited company respectively). This should reflect the payments, which could be tagged to the individual expenses. When you take the money from the business bank account, it would be tagged as a transfer to the drawings or loan account.

I hope that makes sense?