How do I record payments to director for paying a credit card used for business expenses?

Ericahurst0 · ‎September 12, 2022

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!!

paul72 · ‎September 12, 2022

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.

View solution in original post

paul72 · ‎September 12, 2022

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.

Ericahurst0 · ‎September 12, 2022

That's great thank you so much for your help!

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How do I record payments to director for paying a credit card used for business expenses?