How To Match An Invoice I Paid With My Personal Funds?
Imagine the situation: you go on a business trip to Rome to work for a client, and you inadvertently pay for the flight tickets with your personal card (or you don't have access to your business card at the moment). As you know, this is totally fine, it's called Out of pocket expenses, and you can refund the money later from your corporate account to your personal account.
But how do you match the invoice, given that you don't have a corresponding outgoing movement in your corporate bank statements (as you paid with your personal funds)? Simple, follow these steps:
Mark the invoice as "out of pocket expenses": Make sure to mark the invoice as "out of pocket expenses" so our accountants know that you paid for it with your personal funds.
Transfer Funds: Transfer the amount you paid from your corporate account to your personal account. If possible, specify the purpose of the expense in the transaction description. For example, you can mention "Out of pocket expenses for business trip to Rome." This helps accurately reflect the nature of the transaction.
Match the transaction with the invoice: once the transaction you just made shows up in your bank movements section, you can now perfectly link it with the invoice.
As the invoice was marked as "Out of pocket expenses", the accountant will understand that this movement that goes to your personal bank account is correct because you paid for this expense with your personal funds and you are reimbursing yourself. Important, there should be always a proper invoice for that movement issued to your company.
If you've linked the invoice differently before, don't worry. You can always re-link it.
But how do you match the invoice, given that you don't have a corresponding outgoing movement in your corporate bank statements (as you paid with your personal funds)? Simple, follow these steps:
Mark the invoice as "out of pocket expenses": Make sure to mark the invoice as "out of pocket expenses" so our accountants know that you paid for it with your personal funds.
Transfer Funds: Transfer the amount you paid from your corporate account to your personal account. If possible, specify the purpose of the expense in the transaction description. For example, you can mention "Out of pocket expenses for business trip to Rome." This helps accurately reflect the nature of the transaction.
Match the transaction with the invoice: once the transaction you just made shows up in your bank movements section, you can now perfectly link it with the invoice.
As the invoice was marked as "Out of pocket expenses", the accountant will understand that this movement that goes to your personal bank account is correct because you paid for this expense with your personal funds and you are reimbursing yourself. Important, there should be always a proper invoice for that movement issued to your company.
If you've linked the invoice differently before, don't worry. You can always re-link it.
Updated on: 15/03/2024
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