Ltd company purchases on personal credit card?

lifecanbetough4

Is this fine to do? as my personal credit card gives cashback

For example:

1. Debit purchases column, Credit DLA

2. then transfer money to personal bank account, so Credit bank and Debit DLA

3. *then pay off personal credit card*

unforeseen

Shouldn't it be in your company accounts as a cash purchase which you then claim as an expense?

That's how my accountant says to do it

fishybusiness

1. Debit purchases column, Credit DLA

2. then transfer money to personal bank account, so Credit bank and Debit DLA

3. *then pay off personal credit card*

We do this, only pay back at irregular intervals when the business has excess cash.

Really started when we started and used the DLA to 'loan' money to the business.

antrobus

lifecanbetough4 wrote: »

Is this fine to do? as my personal credit card gives cashback

For example:

1. Debit purchases column, Credit DLA

2. then transfer money to personal bank account, so Credit bank and Debit DLA

3. *then pay off personal credit card*

Yes.

unforeseen wrote: »

Shouldn't it be in your company accounts as a cash purchase which you then claim as an expense?

That's how my accountant says to do it

That's exactly what he's doing.:)

unforeseen

Just confused why an entry is made under DLA

fishybusiness

Just confused why an entry is made under DLA

Done because purchase is initially funded personally, not from company funds. It's like a short term loan, hence DLA.