Expenses that will be reimbursed

Accounting
1

Hi

I have a Ltd company and am the only person in the company i.e. director/employee.

One of my clients will reimburse expenses for food and travel. Should I keep them totally separate to my company accounts? Or should I put them in as expenses paid from the DLA and then pay the reimbursement cheque into the business and use it to refund the DLA?

Thanks for any advice

Phil

2

I think what you’ve suggested sounds reasonable - put them in as expenses paid from the DLA and reimburse - but I’m not an accountant

3

Treat all your reimbursable expenses as a charge to the balance sheet. I created a Debtor called Reimbursable Expenses. When i scanned in my receipts I charged them all to this Balance sheet account. When I submitted my invoice i added an extra line on the invoice for the value of these expenses as per the value on the balance sheet account . I then journalised the value of the expenses out against a Dr to sales and a Cr to reimbursable expenses. In you financials these expenses will be treated as cost of sales to arrive at your net sales. Hope this helps.