Manage Out-of-pocket Expenses

Posted by AccountsPortal Gidon on 27 April 2010

Out-of-pocket expenses are business costs that have been paid out of your personal bank account or cash. At a later date, the business reimburses you for the full out-of-pocket amount.

Using online bookkeeping and accounting means you and your staff can submit these expenses from just about anywhere. You no longer have to wait until you return to the office.

Managing out-of-pocket expenses consists of just four easy steps:

1. Create a Supplier account for the relevant staff member (only required once per staff member).
2. Create a Purchase Invoice for each invoice you pay or receipt you collect.
3. Pay yourself or your staff from the business bank account, or petty cash, to reimburse the total out-of-pocket expenses incurred.
4. Enter the Payment and allocate it against the staff Supplier account.

Remember though, maintaining online accounts does not mean you can ignore good basic accounting practises. Hang onto your physical invoices/receipts and file them methodically for future reference.