Director using business credit card for personal expenses

[vsw]

Hi,

the director has used the business credit card for personal expenses.

Can anyone provide me the steps to take to record this, please?

This is what I have done but I feel I'm missing a step...

- I record the spend from the credit card against a director loan account.

- I log onto his personal account and transfer the amount to the credit card

- For the repayment from the director, I record a receive money and deposit the amount to the credit card against the director loan account. So this balances out the spend/repayment and shows up on the credit card.

Thanks in advance, Vicki

[Genreve_S · Accepted solution]

Hi @vsw, 

Thanks for posting. 

I understand the need for this to be recorded correctly. Generally, if the transaction that we are trying to record is not business-related, it's best to record the transaction as a "Spend Money" transaction and pay it back as a "Receive Money" transaction. This does not affect the ledger if the money is returned. I believe how you recorded the transaction was the right way. If you are still in doubt, I would suggest seeking help from a financial advisor to see if there is a better way to have this recorded. 

Let us know if you require any further assistance. We're happy to help. 

Cheers, 

Genreve