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nhmorgan01
January 2, 2024
Question

How can I reimburse an employee's (me) payment of a business expense with a repayment of their loan but still assign it to the correct expense category?

  • January 2, 2024
  • 1 reply
  • 0 views
Here's the situation:

- I have a weekly business expense (janitorial) that has to be paid out of my personal account because Zelle won't work with my business account
- I also have a running Loans Receivable balance to myself

So, instead of reimbursing myself money for the expense when I have a Loans Receivable balance, is there a way I can use a loan payment as reimbursement for that expense?  And then how can I assign it to the correct expense category?

1 reply

Service
Service
January 2, 2024

First, I would encourage you to not mix your biz and personal accounts. It could be worse, but overall you should make an effort to keep them separate.

 

For the janitor expense, write yourself a check from the business, cash it, and when it comes onto your bank feed, assign it to janitorial.

 

For the loans payable, are you saying that you lent the business money? I am a little out of my league here so please check with your accountant on it, but if you lent money to the business, it isn't exactly a loan as much as a deposit to equity, so you can withdraw from that whenever you want. But I wouldn't mix the janitor expense with this. 

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