I am assisting my mother-in-law (MOL) with her personal finances, her "business", and setting up the QB Online account. She is responsible for overseeing her mother's (MH) finances and must submit an annual report accounting for all her mom's financial dealings. Thus, I am using the accrual method and setting MOL and MH up as their own "company".
That said, my plan was:
When MOL uses a personal account to pay for MH's expenses, i will "bill"MH's "company", inturn when the "bill" is paid (reimbursed) from MH's "company" it would reflect as income to MOL's "company".
My question is - the paying for an item with personal funds would be considered an "expense", billable to MH and reimbursable to MOL. So am I correct in creating an "reimbursable expense" as an expense in the chart of accounts, and creating a "reimbursement income" an other income? All my experience is in bookkeeping for companies, and that's the perspective I'm trying to apply from, yet it's not truly a "company" and therefore has some variations. SIGH!!! Thanks, in advance, for your help.