This is a guide on how to add expenses paid personally by company directors onto Quickbooks and how to reimburse directors for these expenses.
I would advise that a director pays as many of his expenses using the company bank account as he can so that expenses can't be missed. I would therefore suggest switching over any DDs or SO's relating to the company to the company bank account and using the company bank account for as many company related transactions as you possibly can.
Some expenses can't be paid through the company bank account, such as mileage claims, but most can be which will make your life a lot easier.
The first thing you need to do is add a 'director's account' if you don't have one already. This account will show how much the company owes the director or vice versa.
To do this, go to the 'cog' icon at the top right of your QBs screen and under the settings list select 'chart of accounts'.
If you already have an account named 'director's account' (or similar) click the 'downward arrow' next to 'account history' at the right hand side of the 'directors account' and select 'edit'. If you don't have an account with a similar name select 'new' at the top right of your screen.
For 'account type' you need to select 'cash at bank and in hand', 'detail type' you need to select 'cash on hand' and then for the 'name' type 'director's account'.
Then click 'save and close'.
Claiming for Expenses Paid Personally
To add expenses paid personally, go to the '+' sign at the top right of your QBs screen and under the suppliers list select 'expense'.
You will then need to add the following details:
Choose payee: add your name
Choose an account: this is usually automatically listed as your bank account but you'll need to change this to 'director's account'.
Payment date: add the date that the claim relates to - I would suggest adding expense claims on a monthly basis (e.g. 30Apr, 31May, 30Jun,...)
Payment method: leave this blank
Account: select the expenses that you are claiming for (e.g. mileage or insurance) - you can add multiple lines so you can claim for multiple expenses.
Amount: add the net amount (i.e. total amount minus VAT) and select 'exclusive of tax' if you're VAT registered. Add the total amount if you're not VAT registered and select 'no VAT' as the VAT option.
VAT: if you're registered for VAT select the correct VAT code (click here for a beginners guide on what VAT code to select).
Then make sure that the total shown at the bottom right of your screen matches the amount you're claiming. It's also important to either upload the receipts for the amounts your claiming in the attachments section or to store them personally in a safe place.
Click 'save and close' at the bottom right of the expense screen.
Reimbursing for Expenses Paid Personally
You'll then need to make a bank payment from the company bank account to your personal bank account for the total expense claim. I suggest putting 'expenses' and the period that the expenses relate to as the bank payment reference (e.g. March Expenses).
When the amount paid out arrives in the 'banking' tab, add it to the 'director's account' with 'no VAT'.