Business Expenses

Question asked by GDPR Deleted 7 years ago

This is probably a really stupid question, but, I'm new to being self employed and still getting my head around all the different aspects of running a limited company.

Should I be using my personal bank account for everyday expenses, and submitting those receipts through my company, and then reimburse myself?

Or,

Use my business bank account for everyday expenses? If I use my business bank account, what is the procedure for logging receipts and expenses?

(Basically I used my business bank card today to pay for my travel, lunch, and some office equipment. What should I do next with receipts?)

Thanks

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Hi Andrew,

If the expenditure is for business purposes then you can explain them from you bank statement as transactions. If the expenses were personal and charged to the business account then when explaining them from your statement you would be required to allocate them as loans receivable, and repayment of the company would be required. When payment back to the company is made then that transaction would also be allocated as loans receivable to fulfil the initial exchange.

I would recommend that you try to avoid using your personal account to make any business payments, as this can complicate the accounting process for the company.

I hope this helps, Theo

Best answer
7 years ago

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