How Input Misc Expenses

David

I have been an independent management consultant for 11 years and have used QB for 10. Here is my solution.

I have a business credit card and charge everything possible to it. My telephone, wireless, internet are all charged there. Note that you usually can't get a credit card solely in the company name but most bisuiness credit cards are backed by your personal credit (know this because i had a credit card company as a client). Either way I am careful to use the business card whenever I spend money for the business.

Once per month I give my business a personal expense charge (a bill in QB) from me personally to the business. This bill includes mileage, all cash items, etc. It also includes my Internet service since it comes on my personal cable. I pay this "bill" by check each month. I use splits to record the sum total of each item. So I have one monthly amount for mileage, one for meals, one for internet, etc. My personal daily log will provide more details if I ever need them. BTW I never have!

To charge clients I prepare a separate bill for expenses each month for each client and enter the bill from me. Then I run the expenses charged to a client through their invoice. I use a separate "bill" so that if a client asks for details I can just print out the bill.

I have an account for mileage, each type of phone, meals, tolls and parking etc. I enter the credit card as a single bill using splits. I don't waste my time each day entering or downloading items. At the receipt of the monthly business credit card bill I manually enter each item and to an appropriate account (and if chargeable to a client). Then I pay the bill.

Each item falls into the right account and the date is off no more than

Hope that helped.

Howard

Would you be reimbursing yourself for this milage? If so, you could write yourself a check and charge it to Milage expense.

Since the CC are not tracked in QB then just write yourself a check from the business accoun to reimburse yourself. Charge the expenses to appropriate expense account(s) so that your P&L accurately reflects the nature of the expenses.

Set up a Petty Cash account to use for cash spending. Look up Petty cash in the QB help file.

Use the same method as #2 above. These are personal funds used for business expenses. You want the business to reimburse you, right?

It probably would be easier for you to designate one or 2 of your credit cards to be used only for business purposes. In the event of an audit a credit card used for both business and personal expenses can be very tricky to prove that they are business expenses. You run the risk of them being disallowed as business expenses.

How are you organized? I have a small consulting business with one employee and I am organized as a C Corp.

A log by month is OK. I post my mileage expenses to the Travel account, and since all accounts much be balanced, the "other side" of this transaction is posted to a personal reimbursement account for funds the corporation owes to me. About once a quarter, and always at the end of the tax year, I clear the personal reimbursement account with a check from the company to me or me to the company depending upon the balance.

Everything should be tracked in QB.

No, you should get a business credit card.

Post to the appropriate Expense account for the type of expense and the "other side" goes to your personal reimbursement account.

Same as above, though they will show up as credits instead of debits in your personal reimbursement account.

-- Vic Roberts Replace xxx with vdr in e-mail address.

What? For what kind of business and in what country? My business credit card is in the name of the company as id my business checking account.

What about the end of the tax year? Expenses posted to your credit card, but not yet in your books because you only enter them when you get the statement ARE expenses for the year just closing, but will not show up in your system.

-- Vic Roberts Replace xxx with vdr in e-mail address.

True just about everywhere that "sole proprietor" exists. You are deceived by the name printed on the cards and checks. Read the ultra fine print of those credit card and bank account agreements and you will see that it is you the person who is the owner of the account, not the business. Of course the owner is the person they come after if you don't pay your bill or bounce checks, or get paid interest and don't pay taxes, etc.

Correct. For most months using the date of the cc statement is okay but those items charged at the end of the year really should be posted using the actual date of the incurred expense. Even using 12/31 for those expenses vs

The OP said "company" which I took to mean more comprehensive than just Sole Proprietor. I am a C Corp and many others hare may be organized as a S Corp or LLC.

I am not deceived at all. My business is a C corp and it is a separate financial entity.

-- Vic Roberts Replace xxx with vdr in e-mail address.

This is only true if the company is a sole proprietor. If it is a C or S Corp then the company is held responsible. I suspect the OP is a SP given his mis-use of personal vs business credit cards.

No, he said "I have a small consulting business with no employees." I am assuming that he is a sole proprietor.

I agree with your last statement for your situation because you are a C corp. The OP would be responsible since he is (probably) a Sole Proprietor or an LLC (same difference in this case).