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Join nowMy husband & I have used our company bank account for personal expenses a handful of times. I recently learned from our CPA that is illegal & not a good idea. Got it! Totally cool.
Now- what do I do about the transactions we've already made? Should I label them owner's draws/distributions?
Is it a good idea to reimburse the company out of our personal bank account in case we were to get audited in the future?
Solved! Go to Solution.
When you use company funds for personal expenses, book them to an asset account you create called "due-from-[name]
then you pay back the company and deposit the payment using that same account as the source (from) account on the deposit
When you use company funds for personal expenses, book them to an asset account you create called "due-from-[name]
then you pay back the company and deposit the payment using that same account as the source (from) account on the deposit
If you are an S corp, code the expenditures as Distributions and you should be fine.