personal expenses

[Lazar Keitelman]

Hi all - I'm a newbie so please bear with me.

I have Peachtree 6.0 complete. I have made a lot of purchases of supplies for my company on my personal credit cards, for which I was never reimbursed. These expenditures are not entered in Peachtree.

How would I reflect these loans to myself so that they appear in my financial statements (for tax purposes)???

Thanks

[dringstrom]

Two things:

- FYI, version 6.0 of Peachtree is obsolete, and no longer supported by Peachtree Software. There have been major improvements in the software since 6.0, so you may want to consider budgeting for an upgrade this year. As I understand it, version 7 will become obsolete this year when the next Peachtree upgrade arrives, most likely this summer.

- Typically a question of the nature that you're asking is best answered by a CPA or other tax adviser that knows your personal situation. Treatment of such matters can vary significantly, depending if your books are cash basis or accrual, and depending upon whether you're incorporated or a sole proprietor. On the surface, it's a simple enough answer...set up a liability account on your chart of accounts and enter the expenses there. However, still waters run deep...if you don't already have professional tax advice, I'd recommend retaining someone. Indeed, I'm a CPA, but I still pay someone else to do my taxes...it's not what I do full time, and the tax strategies that I learn about through a specialist more than cover his fees, plus minimize my exposure with the IRS.

Good luck!

[edisto21]

Set up a "payable" G/L account to yourself titled something like "Payable-Your Name". Then in accounts payable, post the dollar amount payable to you under that G/L account number. It'll show up on you A/P aging and on your G/L until you pay yourself back.

[Deborah Bean]

If edisto is proposing what I think he is, I don't agree.

You should be a vendor in your Peachtree for best results. Enter each expense that you personally paid for as a bill for yourself. In fact, create a standard Expense Report to attach receipts to for filing. That way the line items on each bill will contain a description of the expense and can be allocated to the correct G/L account, such as Office Supplies, Utilities, etc. When you are ready to be reimbursed, simply print your check and pay the selected bills that you want to.

If you do not want to add expenses for yourself to your A/P then create a new General Ledger Liability Account as an Accounts Payable or Other Current Liabilities, Long Term Liabilities, or even an Equity account.

If by chance you are a sole proprietor, I have another solution that solves the problems of owners constantly needing to pay business expenses with personal checks and vice versa. E-mail or call if you need this solution.