Hello,
The director of our company uses his personal credit card solely for business expenses as it has a greater credit limit than anything the business has. The card is linked as a direct feed so expenses are recorded and categorised, with VAT claimed back on them.
My question lies with how to record the transfers out to the director. As it his a card in his name, he pays the card off from his personal account, but the business transfers this amount over. Director's remuneration shows as an additional expense so surely that can't be correct. Do I need to create an account as director's loan perhaps?
Thank you!!
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Hi @Ericahurst0
I won't go into the rights/wrongs of mixing personal/business expenses in this way but the easiest way (if the business is only paying for business expenses that are shown on the credit card statement) is to record the payment as going direct to the credit card company.
As far as QBO is concerned, there's no need to complicate matters even further. Treat the card as a company card.
The business could even make the payments direct to the card company - rather than to the director - all you need is the card company's bank details & the card number.
Hope this helps.
Hi @Ericahurst0
I won't go into the rights/wrongs of mixing personal/business expenses in this way but the easiest way (if the business is only paying for business expenses that are shown on the credit card statement) is to record the payment as going direct to the credit card company.
As far as QBO is concerned, there's no need to complicate matters even further. Treat the card as a company card.
The business could even make the payments direct to the card company - rather than to the director - all you need is the card company's bank details & the card number.
Hope this helps.
That's great thank you so much for your help!
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