Hi
When out on business I pay for business expenses out of my own pocket and then claim it back through expenses from the business. How do I tag the expenses paid to myself? Also do I create a purchase invoice for the expense?
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If its a sole trader then you can book expenses as Dr relevant expenses and Cr drawings, if limited company then Cr will be to director a/c, just be careful in case of limited company if you dont have dispensation in place then all expenses would end up being reported in your P11ds
We have a limited company. The way I have been doing it is when we pay expenses to an employee from the business this is tagged to their Expenses - name account. Then I create a purchase from the receipt and log a payment from the Expenses - name account and all balances. Is this the way to do it?
What sort of expenses, mileage etc?
Just make sure dont duplicate expenses by logging from bank and creating separate purchase invoice and logging payments from invoice itself
Yes I’ve made this mistake before. The sort of expenses we have are sustenance, drinks lunch etc when away or petrol. We allow claims for mileage and we pay this from the Expenses - Approved Mileage account. Thank you for your help.
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