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highlands001
January 31, 2024
Question

Annual Reimbursement S-corp?

  • January 31, 2024
  • 1 reply
  • 0 views

Hi guys. I am an S-corp owner (LLC based, single member.) Previously I paid for business expenses with my personal money; thus, to my knowledge, I should create journal entries to make an accountable plan and recorded as owner's equity. My questions are:

1) Can I just reimburse myself once a year at year end (also my company's fiscal year ends 12/31) with one single check that includes all purchases made throughout the year?

2) Journal entries: should the date of journal entry better be the same as the purchase date, or the actual date I created the journal entries? 

Thank you.

1 reply

J
jeanbiverly_
January 31, 2024

I'm here to address your concerns, @highlands001.

 

Yes, you can create a journal entry as a Partner's or Owner's equity to record business expenses made with personal funds. Then, record the reimbursement as a check. It's essential to seek advice from your accountant during this process. For your reference, you can visit this article: Pay for business expenses with personal funds.

 

To answer your questions:

 

  1. Reimbursing Yourself: You can reimburse yourself once, at year-end, with a single check that includes all purchases you made throughout the year. This can help streamline the reimbursement process.
  2. Journal Entries: You'll need to align the journal entry date with the actual purchase date, as it reflects the timing of the transaction. This ensures that your financial records accurately represent when the expenses were incurred.

 

In case you want to print your journal entry, you can check out this article for guidance: Print a journal entry report in QuickBooks Online.

 

If you need further assistance with the reimbursement process, please leave a reply. We're always ready to assist. Stay safe!

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highlands001Author
February 1, 2024

thank you so much. Another side question: can I also pay the S-corp Owner Health Insurance Premium once a year? I set it up as additional compensation that is reported in every paycheck (biweekly,) but I really don't want to write two checks every month for it. 

Thank you.

A
AnneMariee
February 1, 2024

Hi there, highlands001.

 

Allow me to route you in the right direction about paying the S-Corp Owner Health Insurance Premium.

 

To ensure that you receive the most accurate and reliable advice regarding your concern, I suggest reaching out to the Internal Revenue Service (IRS) or consulting with a professional payroll adviser. These experts can provide you with tailored advice and guidance based on your specific business needs, ensuring that you have the information you need to take the appropriate steps.

 

I'll leave this article on setting up S-corp medical contributions on QuickBooks: Set up an S-corp medical payroll item for your corporate officers.

 

For future use, here's an article on running payroll reports to get useful info about your business and employees: Run payroll reports.

 

Please let me know if you need anything else QuickBooks-related. I'll be around to lend a hand.

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