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How to handle reimbursements from company issued credit card?

I have a company issued credit card for business expenses. I am responsible for paying the balance every month. I am reimbursed for all expenses with in a few days of submitting an expense report. As an Example the total charges for one month my be 5,000 and I have been reimbursed during the month weekly for 1,250 If I put all expenses and reimbursements in one budget category the net should be 0. However I have to write a check for 5K to pay the monthly bill. The first part seems rather clear. Money out money in and 0 at the end but how do I account for the 5K payment? That I do not get as I do not want to double count on either side (Expense or Income)

Any ideas???

Best Answers

  • jacobsjacobs ✭✭✭✭✭
    Accepted Answer
    Tom's approach is exactly what I've done.
    QMac 2007 & QMac Subscription • Quicken user since 1993

Answers

  • jacobsjacobs SuperUser ✭✭✭✭✭
    Accepted Answer
    Tom's approach is exactly what I've done.
    QMac 2007 & QMac Subscription • Quicken user since 1993
  • DOsborne47DOsborne47 Member
    Thanks for the TIMELY and through response Great stuff for a new user and this give me a lot of confidence in the program but more importantly the "community"

    Thanks
  • John_MJohn_M Member ✭✭✭✭
    What I've always done is a combination of using an expense category and an asset account. I have an expense category called Job Expenses:Reimbursed and an asset account called Submitted Business Expenses (the names aren't important, it's the concepts that follow that are).

    When I incur business expenses, I enter each transaction into the credit card account using the Job Expenses:Reimbursed category. Then, when I submit the expense reimbursement (which may not be for a week or so, since my company makes me attach a download from the credit card company on their expense reimbursement system), I create a deposit equal to the entire reimbursement amount into the Submitted Business Expenses account using the Job Expenses:Reimbursed category. This offsets the original expenses and creates a positive balance in the Submitted Business Expenses account.

    When my company finally pays the bill, I show that as a transfer from the Submitted Business Expenses account to the credit card account.

    If I have cash expenses, these are done the same way, except that the expenses are entered into my cash account and the reimbursement from my employer is a transfer from the Submitted Business Expenses account to my checking account. Sometimes, expenses involve both credit card and cash transactions (as they say, "splits happen").

    Everyone uses Quicken in a slightly different manner, but this is the way that I've found works the best for me since it ties individual expenses to each expense submission.
  • DOsborne47DOsborne47 Member
    Thanks for the help. You have some good ideas that I think I can apply

    One thing fore sure as a new user the community is a very powerful tool!!
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