Employee and/or Director Reimbursements via Spend Money
Hi, Ive noticed that reimbursing an employee for expenses is now done through payroll but for years i have done it through spend money using their payroll card, is there a problem with this ???
Also now i need to reimburse my Director who has made a payment on his personal credit card he does not have an employee card so do I set up a card just in his name and then reimburse him through spend money, I assume this would be the correct way to do it.
Hi Jen65
A Director loan account is generally set up to track amounts paid by and owing to the Director. So if the Director pays for a business expense on his personal credit card you would:
- record the business expense as either a Pay Bill or Spend Money transaction and change the Pay from account to the Director loan account. Whether you record the purchase as a Spend Money or Enter Purchase and Pay Bill, the expense is allocated to the applicable expense or Cost of Sale account
- when you reimburse the Director record a Transfer money transaction, this shows the amount as a withdrawal in the bank account and clears the Director loan account
- go to Find Transactions and search by the Director Loan account, there should be a credit for the purchase transaction and a debit for the reimbursement
Please let me know if you need further help with this.
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- record the business expense as either a Pay Bill or Spend Money transaction and change the Pay from account to the Director loan account. Whether you record the purchase as a Spend Money or Enter Purchase and Pay Bill, the expense is allocated to the applicable expense or Cost of Sale account
