Reimburse director for business expenses paid using personal funds.
I own a Pty Ltd, so my accountant had me setup the following account in order to record business expenses paid with personal funds:
Chart of Accounts-> New Credit Card ->Director's Loan Account (GST CODE: GST-FREE).
Then record as Normal the suppliers details and create a new expense, but selecting Directors Loan Account as payment source
· Directors Loan will become $1100.00
Once that is done, I need to process the reimbursement. I log into my business banking account, and transfer $1100 into my personal account. I then refresh the bank feeds in Quickbooks in order for it to pickup the transaction.
I'm unsure about the next steps. Type do I match this bank feed against: (Expense, Cheque or Transfer). Is it TRANSFER, and then I just select the "Directors Loan account" ? That would then put the Directors Loan account back to $0.00.
is this the correct way to do it?