Hi there.

I was wondering what I need to do as I am doing my own consultancy work and I am now incorporated. I do get my invoices processed by client and I receive my check from them. But during the course of the month I did few purchases using my personal credit card like GPS device, printer, papers and other office supply items.

I have the receipts but not sure do I just withdraw this amount from my corporation account? or shall I just wait until the year end and show them as business expenses when doing corporate taxes.

I am still new at this.

Thank you for your help in advance.

You could show them as business expense on your P&L and taxes. I suppose you could withdraw, but you would end up showing that withdrawal as a business expense (to pay the credit card) which would be a two step process as opposed to an one step expense write off.

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Dimple2001

In simple words :

a. Regardless who has paid for the expense , it shall go as an expense for the P & L .
b. If you have paid for it personally , you are a creditor for the business - you can either
1. Withdraw from business account now and it shall be shown as paying off creditor
2. Pay off at the closing of the year , which would be same as above .
3. Not pay at all in which case it would add as creditor specifically shareholder loan and show as a liability on the Balance Sheet of the business .

Either way treat business as a separate entity - if you have personally paid biz expenses , you are a creditor for the business .... Best practice is to keep a separate credit card for buisness - it helps in reconciling and summarizing later .

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Fido.