Picture this: there you are, business owner extraordinaire, at work and making magic happen. Your employee calls and says he is stopping at the store, and asks do you need anything for the office.
You do and you are ecstatic that you don't have to go to the store during your lunch break! So, you rattle off the list of office supplies you need and you get back to work.
Except one small detail. When your employee shows up with all of your office supplies, it finally hits you that he didn't have the company credit card. And now he needs his money back. But you don't really know how to make that happen.
If this has ever happened to you, read on. I'm tackling this confusing topic for you below.
As a bookkeeper, one of the most common questions I get from business owners is: How do I pay myself or my employees back for purchases made with personal money?
For example, if you or one of your employee goes on a business trip, but don’t have the business card to pay for expenses on the trip, it makes sense that some expenses will be made on personal accounts.
Often another situation occurs when an employee is at the store and the business needs one or two things and the employee just picks it up and pays with their personal money.
These are just a couple of examples of how a business would end up owing the owner or employee for business expenses.
These situations occur quite often in business, and not knowing how to handle it can be stressful for the business owner.
So, let’s talk about that.
The big question is this:
How do you reimburse someone from the business? And more importantly, how do you track that on your books?
Well, I’ve got your answers today!
First of all, it is important to track all of the expenses that need to be paid back to you or your employee. It is helpful and important to know exactly what expenses need to be paid back on one big list, so everyone knows what the expenses were and what the total amount is that should be paid back.
To do this, you’ll use a form called an Expense Report. You may have heard this term before somewhere along the way. This is a common form that all businesses will use. Sometimes this is called a Reimbursement Request Form.
This is a template or