Out-of-pocket or personal 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.
Managing out-of-pocket expenses consists of just four easy steps:
- Create a Supplier account for the relevant staff member (only required once per staff member).
- Create a Purchase Invoice for each invoice you pay or receipt you collect.
- Pay yourself or your staff from the business bank account, or petty cash, to reimburse the total out-of-pocket expenses incurred.
- Enter the Payment and allocate it against the staff Supplier account.