Categorizing reimbursements from company to self

johnt

I have been paying company expenses on my personal credit card. The company then periodically reimburses me. How do I categorize such reimbursements?

And, do I record the reimbursement amount (which gets imported directly from bank statements) or should I break up the amount into individual line items for each expense?

Barsin

Hey there @johnt

So are you also the business account owner? Can you manage the transactions on the business side?

If you're the business owner I would check out this article on Accounting For Reimbursable Expenses.

If you're an employee for an example, and you've made a purchase for the business you work for, you may want to create a liability account in your chart of accounts under "Due to your and Other Business Owners". Call it Money owed to me by Business (name), if you wish.

Then create an expense in your transactions page and categorize it to the liability account you just created.

This will debit your liability account decreasing it the amount you are owed.

Then create an income transaction once they've repaid you for that amount and categorize it to the same liability account we created.

This will balance your account to show that it is zeroed out and you are no longer owed.

Hope this helps!