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Level 1

Director Expense and Reimbursement via Direct Deposit

Hi,

 

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 ?

 

Thanks

3 Comments
Level 15

Re: Director Expense and Reimbursement via Direct Deposit

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

Level 1

Re: Director Expense and Reimbursement via Direct Deposit

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:

https://www.youtube.com/watch?v=3vUFSVJX5No

 

So I'm kinda confused which is the best and clear method to do this ?

Expert UK-based QuickBooks Online Support - 01273 441187 Learn how to add director expenses in QuickBooks Online. Find Rowan https://proadvisor.intuit.com/ap...
Level 15

Re: Director Expense and Reimbursement via Direct Deposit

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.