Xero - How to Account for Business Expenses Paid for Personally via Bills

[@mark-and-trina]

🎁 EXCLUSIVE DEAL - Get 90% Off Xero for 6 months by signing up here: bit.ly/ytxero90 ✅ Get your FREE Xero Setup Checklist here: bit.ly/3ZgSaqt 👉 Master Xero without getting stuck with The Ultimate Xero Course for Australia: bit.ly/3CFkMkl ►► Do you wish you could get step-by-step instructions for setting up and using Xero quickly and easily? ►► Do you want clear explanations in plain English with all the information in one place? ►► Do you want to feel confident that you’re doing it right? 🚀 Then check out the step-by-step program for business owners to master Xero without getting stuck: bit.ly/3CFkMkl

[@Gener1KGaming]

This guy is a legend. Thank you for making this video

[@mark-and-trina]

Haha thanks

[@GrahamSouthorn]

There are so many things like this in Xero that are almost impossible for beginners to know about. Books tend to be very simple on how to get started OR general books on accounting. The real nitty-gritty stuff like this is nowhere - until now, thanks to you! I will be watching many more of you videos.

[@mayuk5424]

You explained what the Xero’s helpdesk could not explain in this video. Thank you so much!

[@danielacantatore4126]

I am so glad I found you. I love the way you explain everything. The bundle course is great! I bought it and am loving it!

[@mark-and-trina]

Glad you enjoy it!

[@PGGamer81]

How do you reconcile when you reimburse from your company accounts to your personal account? FYI - my personal account isn't linked in Xero. Just the business account.

[@Cafedex]

Hi Mark, how does the owner physically get their money? I have a similar situation however I have transferred the cash from the business bank account to my personal account to compensate for the cost. Do I just reconcile the spend to the supplier (me) as per usual and not do the steps outlined here?

[@em4220]

Thanks for the video - this is really useful! Just wondering if the contact needs to be the owner who paid the expense or if you could use the merchant instead? For example - the bill is from XYZ Marketing and paid from the Director's Loan? I'm asking because for reporting it would be good to be able to pull up a full list of bills from XYZ Marketing, including those that were paid for by the director before the bank account was setup.

[@kashmehra]

I also have a question - If we take same example, will $110 be paid to owner automatically or we have to pay it seperatly?

[@josephbarratt7093]

Thanks for this video! I have used DEXT to import images and info captured on my receipts how would I link these to the bill when it’s created? Thanks.

[@petergreen3194]

Hi, thanks for the video. You explain how to pay personal expenses via Bills, and also via Journals in another video. However, why can't this be done as a "Spend Money" transaction?

[@backchat-ai]

Thank you for this. When would you use bills vs manual journals? Is there a difference and which is better in this case?

[@westcoasteagles6308]

Ive looked for a video like this for so long, finally im glad i found your video, very clear, thanks so much, helps when i accidently pay for things from my personal account. So just to be clear this wont act as business income since the money is introduced? Thanks

[@mark-and-trina]

That's right it's not business income. I think we've all accidentally used the business card to pay for personal things and vice versa :)

[@annabellebreakenridge2211]

Just to double check ,for a LTD company - would it be Directors Loans introduced?

[@mark-and-trina]

Yes you'd use a director' loan.

[@MariannaFerreri-bt9rt]

If you pay with cash is that owner funds introduced

[@FineTuningAnalysis]

Hi Mark, great video. Quick question, i am looking to see how I can record a sales invoice from a few months ago which was deposited into my personal bank account before I had my business bank account set up, in Xero. I have set the Invoice up and I think I just need to use this method & mark it paid using the Owner drawings account? Does this sound correct? :)

[@NickHiggins-xb3rr]

Thanks for this. How come you don't mark it as paid from the 'business bank account'? I paid for a computer with my personal card. I want the business to pay me back for that. Don't I then transfer funds from my business bank account to my personal bank account? Therefore wouldn't I mark it as paid from the business bank account in Xero (instead of 'Owner A Funds Introduced')??

[@mark-and-trina]

Technically you have two separate transactions that need to be reconciled separatetly.

[@michaelhawker9900]

For Xero in New Zealand Owner Introduced Funds is an equity account not a liability. Why the difference in Australia?

[@fais3000]

Same, I'm also confused about that. What difference will this make if it is considered as equity instead of Liability?

[@tysont2380]

How would you account for a double payment of an invoice but the supplier has not refunded the second payment and will credit you in the next invoice. Would you leave the second invoice unreconciled in the bank feed

[@MichaelWhitehead-hr9br]

Hey mate, I followed your instructions. Though what I don't understand is now I have a bank reconciliation of the same amount as I transferred the money from my account to my personal account? How do you fix this, as I now have this expense come through twice?

[@mark-and-trina]

Do you have your personal bank account in Xero?

[@anniecrooners1021]

I was stressing about this, thank you!

[@mark-and-trina]

No worries!

[@AnitaandLucas]

Thanks for this! Is this the same for when I paid for stationery from officeworks and changing locks to our shop's front door? I paid these business expenses on my personal cc. Waiting for a business cc from the bank so my cc was used on the day. I'm not a director of the company, my siblings are. I'm doing the book keeping. Do I code those expenses the same way to reimburse myself? I need them to be shown in the p&l as business expenses. Thank you!

[@mark-and-trina]

If you're being paid a wage you could do a payroll reimbursement.

[@AnitaandLucas]

@@mark-and-trina perfect, I'll do that

[@moonwrusse5649]

Thanks mate, very helpful

[@mark-and-trina]

Welcome!

[@michaelberlangieri3947]

Thank you 👍🏻

[@mark-and-trina]

Welcome 👍