Suppose you are in the store and you remember that you need a pack of printer paper for the office. But you don't have the business debit card with you. Then what?
If you purchase something for your business you can advance it privately. You reconcile this later in the business accounts. This can be done in two ways:
1. Directly transfer the amount back to your private account
The easiest way is to transfer the amount immediately from your company to yourself, that way it remains very clear what happened. In addition, you will immediately have the money back privately.
- Book the receipt or purchase invoice in your accounts.
- Transfer the total amount including VAT from a business account to your private account.
- Connect this payment from the business account to the previously entered receipt or purchase invoice.
That's it. The receipt or purchase invoice is now neatly recorded in your accounts. You privately have the money back and that payment ensures that the payment of the receipt or purchase invoice has been met.
2. Note that your company owes the amount to you
You don't always have to immediately transfer the amount from your company to yourself; you can also simply record it as a debt. A debt from your company to you. Suppose your name is Bart, then this is how you do it:
- Book the receipt or purchase invoice in your accounts.
- Create a memorandum booking with two categories: the first is 'Crediteuren' and the second is 'Stortingen Bart'.
- Set the receipt or purchase invoice as the related invoice of the memorandum booking.
- Under 'Crediteuren', write € 10.00 in the debit column. This will reduce this amount.
- Under 'Stortingen Bart', write € 10.00 in the credit column. This will increase this amount.
Everything is now settled. The receipt or purchase invoice has been paid by means of a connected payment of the 'Memorandum' type. The balance sheet shows that Bart deposited € 10.00 into the company. Of course, this is not what actually happened, but this is how you book this. This way, the company owes Bart an additional € 10.00.
If you still want to transfer this amount to yourself later, you do it as follows:
- Transfer € 10.00 from a business account to your own account.
- Connect the payment to the 'Opnames Bart' category.
It's that easy.