Director using business credit card for personal expenses
Hi,
the director has used the business credit card for personal expenses.
Can anyone provide me the steps to take to record this, please?
This is what I have done but I feel I'm missing a step...
- I record the spend from the credit card against a director loan account.
- I log onto his personal account and transfer the amount to the credit card
- For the repayment from the director, I record a receive money and deposit the amount to the credit card against the director loan account. So this balances out the spend/repayment and shows up on the credit card.
Thanks in advance, Vicki
Hi vsw,
Thanks for posting.
I understand the need for this to be recorded correctly. Generally, if the transaction that we are trying to record is not business-related, it's best to record the transaction as a "Spend Money" transaction and pay it back as a "Receive Money" transaction. This does not affect the ledger if the money is returned. I believe how you recorded the transaction was the right way. If you are still in doubt, I would suggest seeking help from a financial advisor to see if there is a better way to have this recorded.
Let us know if you require any further assistance. We're happy to help.
Cheers,
Genreve
