There are many ways to capture the expenses and disbursements you make when completing work for your customer contacts. Here are several methods but many more exist so seek advice for specific circumstances from your Advisor.
NOTE: These may or may not apply to your business. Many tax rules apply depending on the process you follow,+ including such approaches as reimbursing staff through payroll or to Directors Loan accounts, so seeking advice from your Advisor is very important as always.
- Enter a Purchase transaction for each expense with the Contact set as the supplier and Tag it with the appropriate Job or Project Tag.
- Enter a single Purchase transaction with expenses as separate Line Items and set the Contact to be the person who needs to be reimbursed. Tag it with the appropriate Job or Project Tag. You would need to do one of these for each Project or Job.
- If you are just trying to capture the expense and aren’t charging the customer, or you are marking up and charging separately, you could enter them as simple monthly Journals. I.e. CREDIT Bank Account (that payment is made from the person/employee/director) and DEBIT the various expense categories for the month.
- Capture as expense reimbursements if paid by employees.
- Capture and book the transaction as a Purchase and apply payment to a Liability:Directors Loan account where the expenses have been paid by a Director.
- Via personal or employee credit card management techniques.
- If they are cash expenses you could follow a Petty Cash methodology.