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Recording Expenses paid for with personal money


Create a new bank account and call it 'Expenses'

Whenever anything is paid for out of personal money, record it in the same way, but when you record the payment, assign it to the 'Expenses' account.

This will then build up a negative balance on the Expenses account.

The amount the Expenses account is overdrawn by is the amount you are owed.

When you reimburse yourself simply Transfer money for the main account to the Expenses account to set the balance back to zero.

This has the added benefit of giveing you an accurate record of everything paid for out of personal money and also when you reimbursed yourself.

If you have more than one person in the company paying for items from their own pocket then it's advisable to set up an expenses account for each individual.




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