Personal Money - Company Bills

by Ursula
(Cold Lake, Alberta)

Transferring personal money to pay company bills

Hi,

I have been buying material and supplies for my small business. I also got a farm loan to purchase some land, and I will be paying it back right now with personal funds.

Can I claim any of this back, and how would I get any of this money back later on?



image of fancy scroll lines



Hi Ursula,

I'm not sure by reading your question if your business is a farm or something else.

My suggestion to you is to start by reading my article on How To Create An Audit Trail and the article called Managing the Books Yourself.

There is some overlap between the two articles ... because there are some basic things you need to be concerned about ... such as keeping your personal finances separate from your business finances. I explain how to do that.

The Audit Trail article does have a section that explains how to reimburse yourself if you have used your personal funds for business expenses ... look for the subtitle Expense Reports - Keep it to a Minimum.

Without a few more details, that is all I can suggest for the time being. If after reading the information, you have more questions ... just post back here by clicking on the "comments" link below.

Have a great night!

Comments for Personal Money - Company Bills

Click here to add your own comments

Oct 26, 2011
Purchases From Own Money
by: Anonymous

Oh dear. So I was talking to some other bookkeepers and I think I might be doing something wrong. If I am I want to correct it ASAP as the CPCC I started working for is really new and I am only a few transactions in and could do it all again fast correctly.

How would you suggest going about recording expenses, like food or gas that was paid for from personal money and they would like to be reimbursed?

Would I debit the expense account like gas, office supplies, and what not and credit the shareholder's loan or current liability account? Both are liability accounts. The money isn't paid back very fast at all?

Thank you

Oct 26, 2011
Reimbursement for Expenses
by: Lake

Hi,

I moved your post as a similar posting on this topic had been made in the forum before.

The original post above gives the link on how to reimburse owners who used their personal money to pay company bills.

I just want to make it clear that this is not a good practice ... although I know "stuff" happens.

You may want to take some time to read the forum post on How to Book Meals & Entertainment Expenses and How Should the Company Reimburse You for Personal Vehicle Expenses When You are Incorporated?.


Click here to add your own comments

Return to Small Business Bookkeeping.

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.



SHORTEN
Your Learning Curve!

 



Warm up your tea cup and check out these chats ...

Click on image above to read the chat.








Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is NOT associated with the business operating in Bonnyville AB.


A Handy Reference