My business is a sole proprietorship. Mileage is a deductible expense, so I want to record it. But no actual money changes hands when I drive my vehicle on company business. How would you recommend recording this? If I use a journal entry, I can obviously credit the motor vehicle expense account. But what do I debit? Does this constitute a capital contribution that will be closed out to owner’s equity at year-end? Thanks.
It can be a capital contribution or you can reimuburse yourself via expense check
You can record it as a journal entry (debit
Motor vehicle expense and credit
Owner's equity) but I would record it under
Expense claims tab.
The current trouble with recording it as an Expense Claim is that I don’t have full flexibility choosing the offsetting account. I only see my income accounts, expense accounts, and accounts payable. If I choose accounts payable, I still need a journal entry to zero it out, presumably to owner’s equity. Your response to my other posting about travel expenses suggests all this might be fixed when your anxiously awaited Expense Claims upgrade is released. So I’ll bide my time. Thanks for the support. The software is really useful already. With some of the changes you’ve let us know are on the way, it will be great.