Making Business Payment from Personal Account

I am waiting for a new card, but I have a payment due today, which can't be postponed.

It's to the US, and I can't pay in another way.

If I take the money out of my business account and pay it from my personal account, what's the best way to record this in my accounts?

I am a limited company if that information is helpful.

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 14,878 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Make the payment from your personal account.

    Record that in the Ltd Co account as Directors Loan.

    When the business pays you back, record that in the Ltd Co account as repayment of the Directors Loan.
  • MakingLifeMine
    MakingLifeMine Posts: 57 Forumite
    First Anniversary First Post
    Make the payment from your personal account.

    Record that in the Ltd Co account as Directors Loan.

    When the business pays you back, record that in the Ltd Co account as repayment of the Directors Loan.
    Due to the sum of the payment, I would need to take the money out of the business to transfer to my personal account to make the payment. If I do what you say, would it sound like I would debit my business account twice? As I am not using my personal funds...
  • Savvy_Sue
    Savvy_Sue Posts: 46,018 Forumite
    Name Dropper First Post First Anniversary
    If it all happens on the same day, then it doesn't matter which order the transactions happen, surely.
    Signature removed for peace of mind
  • Grumpy_chap
    Grumpy_chap Posts: 14,878 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    Make the payment from your personal account.

    Record that in the Ltd Co account as Directors Loan.

    When the business pays you back, record that in the Ltd Co account as repayment of the Directors Loan.
    Due to the sum of the payment, I would need to take the money out of the business to transfer to my personal account to make the payment. If I do what you say, would it sound like I would debit my business account twice? As I am not using my personal funds...
    Okay - I initially understood you were using personal funds.

    The use of the personal account is academic.

    Pay from the Ltd Co to personal account.

    Pay the business bill to USA from personal account.

    Enter into business accounts as payment of the business bill.
  • MakingLifeMine
    MakingLifeMine Posts: 57 Forumite
    First Anniversary First Post
    I forgot to come back here and say thank you for helping!!!
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