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Community > Accounting >

Expenses Claim Confusion

Started by brett lomas -   in Accounting

Hi Guys, i use my own credit card to pay for expenses when i am working, whats the best practise? As the items show on my credit card account i reconcile them against the relevant accounts i.e. fuel, national transport etc. I am now claiming the expenses back. I am self employed so i have submitted an invoice which includes the expenses. if i use the expenses claim does that duplicate the items against say the fuel account? hope that makes sense.
I also use my credit card for business expenses. I have the visa set up as a bank account and get the feeds. As the items show up, and you reconcile them you are already posting to the appropriate expense account. Your business should then just pay the portion of your credit card account that relates to expenses, when you make a payment to the credit card it's just a transfer of funds, nothing is posted to your expense accounts.

Submitting an invoice or expense claim is going to double up entries.

So, either submit an invoice [/b]or

To reconcile your credit card properly if you are getting bank feeds or importing the statement then any items that are personal should be posted against drawings. That way the business can just pay either the monthly amount due or statement balance in full without any further coding - it's already done. Think of this as a business card that you sometimes use for personal - same as taking drawings from the business bank account.

But don't do both!

Diane Illingworth  

Thanks for the help Diane, so say i receive a credit in to my back for £5k to cover my expenses how do i allocate that against the specific accounts, i.e. fuel, parking, Train.
My last expenses claim had 52 items on it? all the items pass through my credit card and bank account.
Thanks again for you help

brett lomas  

Hi Brett,
If all your expenses are already coded from the credit card you would just put the credit to income, no need for further coding as you've already picked up the expenses. Your P&L would show Income less Expenses = Profit, as per usual.

Jacki Knight