Reimbursed Expenses

[Magnolia1]

Hi I am doing the bookkeeping for my husbands consultancy. He gets paid into his company most of it I code to professional fees (4-1000) however I don't know how to code the reimbursed expenses he gets back. Is it coded under a 6- account being an expense which i could name reimbursed expenses but that doesn't seem right. It is not income of course, perhaps costs of sales?? Can someone clarifiy this please?

Marty

[LRBooks61 · Accepted solution]

Hi

I suggest that you record it as income as reimbursed expense account. My reasoning behind this is that you are invoicing the client for this so it should be shown on the P&L as same.

The original expense is recorded, as you say in the expense account 6-XXXX 

Hope that makes sense to you and helps

Lisa