Record business expenses
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You can record any expenses paid with personal money by recording a purchase or direct Money Out Transaction.
Whenever any expenses are paid for with personal money, you will want to record it by creating a Purchase as normal, or a direct Money Out Transaction from the Expense Bank Account; much like you would a normal Purchase or spend.
If creating a Purchase, ensure to record its Payment has been paid from the Expense Account.
These Transactions will create a negative Total for the Expenses Bank Account to represent what the company owes for the Expenses paid with personal money. Like any other Bank Account with IRIS KashFlow, you will be able to view the balance for the Expenses Bank Account from both the Dashboard, and Bank screens.
Record expenses paid with personal money
The method by which we do this is by creating a Bank Account entitled Expenses.
Setting Up
To begin, you will want to create a new Bank Account by :
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Go to Banking > Banks and select Add bank account.
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From Manually create and manage select Continue.
The three most important fields you should enter on the next page are;
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Account Name - this should easily identify the bank account, for example, Jack Burton’s Expense Account.
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Starting Balance - this should be 0.00
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Start Date - this should be a date before the first transaction. To make things easy we advise that you enter 01/01/1970 here.
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Click Add Account. Your Expense account is now ready to use.
Reimbursement
When you reimburse your staff, or yourself, you may want to create a transfer from the Business Current Account (or similar) to the Expenses Bank Account via:
Go to Banking and select Transfer Money. Set From as the Business Account and To is specified to the Expenses Account the amount is going back into.
You will be able to monitor this account much like you would any other, via the Balance Sheet and Trial Balance Reports.