How do I record mileage for tax purposes, expensed to a "Due to Shareholder" account, and reimburse it later? (Canada)

Hi there userpatrick2,

Making sure your transactions owed to your shareholders are correctly accounted for is an important part of running your business. QuickBooks Online can facilitate this by using accounts to keep track of this money. I can give some insight into this.

One way to do this would be to set up a due to shareholder account as either a credit card or a bank in order to use it as the payment account in your expense. You can create this account by navigating to the Accounting tab and select Chart of accounts. Click New in the top right to create a new account, then enter the info like account type and detail type.

Once this account is created, you can create an expense and use this account as a payment method. Click on the +New button in the top left and choose Expense. Enter the info for your transaction, and in order to use the due to shareholder account, click the Payment account drop-down and select it from there.

When you want to reimburse your shareholders, you can record it as a Transfer from your bank to the due to shareholders account. To do this, click +New in the top left, then Transfer. Select the accounts you want to affect then save.

If you need assistance with creating this account or want to use another way to enter these transactions, I recommend speaking to your accountant. Their accounting knowledge, as well as an understanding of best business practices, can assist with entering transactions owed to shareholders. You can invite them to your QuickBooks account by going to the My Accountant tab and entering their contact information. If you want to find an accounting professional with experience with QuickBooks Online, you can click on the Find a pro to help button.

I hope this helps you with entering these expenses into QuickBooks Online. Feel free to reach out here if you need more information.