Capture It in Your Entity’s Bookkeeping
Next, you need to have your entity reimburse you. The amount your entity owes you is the balance in the asset account in your personal bookkeeping from above.
To complete this step, have your entity make a payment to you for the amount of the reimbursement due. When your entity makes this payment, it will code the payment in its bookkeeping to the appropriate account.
This is a key step because the reimbursement is how your entity records the expense on its books. It’s important to make sure the reimbursement gets done before the end of the year so your entity can capture the expense in the appropriate tax year.
If your entity doesn’t have the funds to reimburse you, then you should consider charging interest or categorizing the expenses paid personally as a contribution to your entity rather than a loan.
When your entity reimburses you, be sure to code it to the asset account you use to track your reimbursements in your personal bookkeeping. This is the “Reimbursements Due” account described above.