Question:
In a Sole Proprietor business with no employees, what is the preferred way to record Billable Expenses paid by the owner on behalf of a Customer?
Is it:
- via an
Expense Claim
payable to the owner with a subsequentJournal Entry
to transfer the amount toOwner’s Equity
, or - by a direct
Spend Money
transaction from aCash
account, or - via an
Expense Claim
that is subsequently settled with aSpend Money
transaction, or - some other way?
And should these be cleared at the end of each year, or more frequently?
I’ve seen a number of postings on this topic, but nothing entirely definitive that describes the preferred end-to-end process. @Tut, I’d especially like to hear your thoughts on this.