Using Director's loan account properly to repay expenses

[Ed_Lambeth]

HI All,

Apologies if this has been answered previously, and i will be happy to be refered to the answer, but i am unable to find it.

I have just started using Quickfile to do my LTD company’s accounts,
I have been trading for almost a year and am looking to put all my books straight for my filing.

Now, i have been paying for all my companies expenses (just me as director, no other employees, trading as a micro entity) from my own pocket, and now need to start claiming them back so my company can repay me.

I understand that this is done through a director’s loan account, however how do i credit the account in the books to then re-debit.

Would it be suitable to add a total amount into the account within the software equal to the total amount to be reclaimed?
or would it be better to add a credit line for each of the expenses to then be repaid, set at the date when i actually bought the item/expense?

Many thanks,
E.L.

[Paul_Courtier]

How did you record the company expenses paid by you?

I’m guessing you never have?

You need to create purchase invoices for everything your business should have paid and mark it as paid from the directors loan account. Then whatever that total is can be drawn by you and that is then tagged once again to the directors loan account.