Record a business cost paid personally

When you pay a business cost personally and the company owes you reimbursement, record one business cost and one amount owed to you. The later reimbursement clears that amount owed; it is not a second expense.

The account treatment depends on the entity and arrangement. Confirm whether this is a reimbursement payable, owner contribution, shareholder loan, or payroll-related payment before posting. The example below assumes an approved $60 business subscription that will be reimbursed, with no separate tax adjustment.

1. Record the original cost

Keep the receipt, business purpose, and proof that personal funds paid it. Check that the expense or vendor bill is not already in Bokeping.

Have your accountant select or create an appropriate liability account, for example Due to Owner, in Chart of Accounts. The name is illustrative, not a required built-in account.

Use Accounting → Manual Journals for the reviewed original entry:

Account	Debit	Credit
Appropriate subscription expense	$60	—
Due to Owner	—	$60

Set the actual business date, receipt reference, and a clear memo. Review equal totals before Save and Close; this posts the journal. Do not credit the company’s checking account here, because company cash did not pay the original purchase.

2. Record the reimbursement once

When the company actually reimburses $60, the accounting effect is:

Account	Debit	Credit
Due to Owner	$60	—
Business checking	—	$60

If the payment is not yet in the books and arrives in Banking → Bank transactions, categorize that outgoing row to the reviewed reimbursement liability account, with the receipt/reference in its memo, then review and post it. If the reimbursement was already entered through another workflow, match the bank activity to the existing record where supported; do not categorize it again as a new expense.

Recording this in Bokeping does not send the money. Do not select an ordinary expense category for the reimbursement after recording the original cost.

3. Check the result

Profit and Loss should contain the $60 subscription cost once. After reimbursement, the related Due to Owner balance should be zero and business checking should be $60 lower. Before reimbursement, the $60 liability remains; company cash is unchanged by the original personally paid cost.

For a partial $40 reimbursement, $20 remains payable. Keep each payment linked by reference to the original receipt so the outstanding amount can be explained.

If the cost already exists

Stop before adding the first journal again. Review the original bill/expense, its payment account, and any existing reimbursement balance with your accountant. A bill needing settlement, inventory purchase, payroll item, or personal withdrawal may need a different workflow. Do not connect a personal account as company checking just to make this example fit.