How to tag a payment I made for someone else but got cash back

I have my own business, but am also employed full time. Sometimes I pay for something for my employer using my paypal which automatically creates syncs an entry in Quickfile and I get given cash back by my employer. How do I tag these entries?

Are you a director of a limited company or are you self employed?

The answer will depend on what you do.

Either way you will need to use the cash account.

Limited company - tag the PayPal payment as directors loan account then create a cash account transaction when your re paid and tag that to the directors loan account also.

Self employed - tag the PayPal transaction as proprietor drawings then create a cash account transaction when your re paid and tag that to proprietor drawings also.

If you end up spending the cash on yourself and not the business then you will need to create a money out transaction the in the cash account and then tag it again to either director’s Loan Account or proprietors drawings.

It’s not a business expense so it’s not treated as such, but it remains business money and held as cash, in hand until you spend it.

This topic was automatically closed after 7 days. New replies are no longer allowed.