I'm new to quickbooks and have some basic questions. Have been searching for an answer for days but couldn't find it. How would I go about recording in Quickbooks online the following:
(1) Director payment on behalf of company to suppliers using Director's personal credit card or cash ?
(2) Company reimbursement to Director via a Direct Deposit from company's account to Director's account ?
The director paying a company expense, is a loan, so it should post to a liability account.
I like to set up a credit card type account named director loan and charge the expense just as any CC charge. Then just pay back the director CC the same way you would make a payment on a normal CC
Thanks for the suggestion Rustler. Are you based in Australia ?
Reason I'm asking is I understand in the UK there are apparently tax implications for establishing director loans and having balance in there at the end of the accounting cycle. Not too sure about Australia.
I've been suggested to setup and use a Cash on Hand account. Also I googled and found another suggestion to use bills in the URL below:
So I'm kinda confused which is the best and clear method to do this ?
Sorry I did not notice the country flag, I am in Texas
If there are tax implications, and I do not understand VAT in enough detail to know, then it would probably be better to set the director up as a vendor and enter a bill to paid later. From the little I understand of VAT, entering a bill will allow you to select the VAT category you need.