How to record a business expense paid with my personal card ?

Thinking_Factory

Hi,

I frequently purchase stationery items for my business using my own cash or personal card.

I record these business expenses in my corporate wave account as follows (example for a $100 purchase):

Debit $100 in account "office supplies" declared as an expense in my chart of accounts (70 series)
Credit $100 in account "Due to Director" declared as a liability in my chart of accounts (30 series)

And when I Reimburse myself (I usually issue a check from my corporate bank account to my personal account) I add the following transaction on the payment date:

Debit $100 in account "Due to Director"
Credit $100 in account "Corporate Bank account" (20 series)

few questions for you:

1. Are these two entries correct from an accounting perspective?

2. Should I use the personal wave account or the business wave account to record all these business expenses paid from my own pocket?

3. Should I create them as receipts?

Thanks in advance for your precious help on this.

AlexL

Hi @Thinking_Factory , I'm afraid that this is somewhat more complex due to the fact that you're actually paying the amount back. As I'm not a CPA and I don't want to give you information that may have a negative effect on your books, I'd highly recommend reaching out to an accountant directly to discuss if this method makes the most sense.

Sorry that we can't be of more help here.