raeoflyte
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Post by raeoflyte on Jul 17, 2013 22:50:34 GMT -5
My new job is awesome, but I'm starting to have expenses. Some will be reimbursed by the company and some won't. My entire budget tracking system has gone to shit, but I at least need to do this well so I can get reimbursed everything possible, and hopefully have an easy time come tax season to claim the rest.
What do you all do? Separate Debit/credit card for expenses? Paper receipts? Mileage log?
I'd like to go paperless as much as possible. I was thinking I could email pictures if receipts to myself, but that seems complicated since I'll need to track what is reimbursed and what isn't. A giant spreadsheet I suppose, and a separate file for receipts?
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KaraBoo
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Post by KaraBoo on Jul 17, 2013 23:14:58 GMT -5
First - I would find out what is required by your company to be reimbursed in all areas - food, travel, mileage, etc. Whatever method they require will actually make it easier on you to a point. Whatever they require - scan and send a copy of what you are submitting to yourself before you turn the expense report in. That way, you can track what was reimbursed and what wasn't.
It'll get easier the more times you submit expenses (or should).
As for keeping a separate debit/cc for expenses - that's going to be up to you whether or not that will make things easier or more complicated for you.
Here's an example of what my company does: They require all receipts to be taped to a piece of standard copy paper (multiple receipts per page is fine) and their expense report filled out listing all expenses. This system allows for an easy way to scan the documents into their accounting software, thus also making it easier for me to send a copy to myself for tracking.
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Deleted
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Post by Deleted on Jul 18, 2013 15:32:13 GMT -5
reo, I missed the fact that you have a new job. Is it essentially the same job or are you doing a lot more traveling? Although neither DH or I now "work" aka get paid for working I still have to keep track of stuff for tax purposes. If I'm physically traveling, I have a zip type plastic envelope where I keep all receipts. I also do a print out of a calendar on which I mark my task(s) as well as mileage. At the end of my trip I separate everything out and file accordingly. Do you have a separate credit card for just business expenses? If not, I recommend it.
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movingforward
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Post by movingforward on Jul 18, 2013 15:42:08 GMT -5
Congrats on the new job. When I travel for work I write on each receipt what it was for (e.g. breakfast, lunch, dinner) so it is well documents how many meals I ate each day and where, etc. I typically just have an envelop where I keep all the receipts. My company has an expense reimbursement form I have to complete when I return and attach any receipts. I guess I do it pretty old school. Some people here take pictures of their receipts and send it email it to themselves. That just seems like more work to me. Easier to just stick it all in an envelope
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justme
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Post by justme on Jul 18, 2013 15:43:49 GMT -5
I don't have a separate cc for work, but I travel infrequently and food is reimbursed by the government's per diem rate so I only turn in receipts for hotel/flight/rental car type things. If I was traveling more than once a month or had to give more detailed accounting of things (like being reimbursed for lunch by how much I spent vs. a flat $15) then I probably would use a separate card.
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raeoflyte
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Post by raeoflyte on Jul 18, 2013 16:01:33 GMT -5
Hi Bonny! I'm a loan officer now, so very similar to what I did, but on the sales side. I won't be traveling much. My expenses will be fees I front, such as condo questionnaires. I'll get reimbursed for those if the loan closes and the fee is charged. Otherwise it is just my expense. I will have mileage, although not a ton and that will not be reimbursed by the company at all. Same with meals and such once I have clients to take out. One other question: since my expenses are likely to be over 2% of our income, then my husband can do a separate 2106 for his expenses even though his are less-correct? It doesn't have to be over 2% for each of us?
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raeoflyte
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Post by raeoflyte on Jul 18, 2013 16:04:50 GMT -5
So I'm thinking separate card, and then a quick reconcile each month of what file/activity the expense was for and if I get it paid back to me. That would eliminate me having to keep too much paperwork besides the statement... Hopefully?
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wvugurl26
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Post by wvugurl26 on Jul 18, 2013 16:07:13 GMT -5
My mom has a lot of medical expenses for her husband and mileage a handful of times per year. I created one Excel spreadsheet with 12 tabs, one per month. I used a handful of column headings like date, name of who it was paid to, amount, and type (dr copay, script, etc). I left quite a few rows maybe 25? Then I created a sum field for the amounts.
I did a few more column headings below that for the mileage related stuff. I did date, purpose of trip, miles, mileage rate for tax purposes and one for the total mileage deduction.
I tried to cut down on the amount of data entry needed by using formulas. Then there's an envelope associated with each month for the receipts.
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saveinla
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Post by saveinla on Jul 18, 2013 16:18:09 GMT -5
My DH travels a lot for his job and he tracks expenses in a spreadsheet, so he does not miss anything and make sure he gets all the checks due. While traveling he jots everything into a small planner and has a plastic envelope where he puts his receipts. He still has to scan receipts for getting his reimbursement. He has a CC from his job and uses it 95% of the time, except in some places where they still don't take Amex.
He is leaning towards opening a separate checking account recently, to deposit his reimbursement and pay his corporate cc.
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Deleted
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Post by Deleted on Jul 18, 2013 17:04:57 GMT -5
Reo,
Are you on commission? Wouldn't things like mileage, dinners et cetera be deductible against your income?
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Jul 18, 2013 17:23:00 GMT -5
Since I work for the government, I cannot use a CC for a reimbursement. Even debit cards are questionable. I have a category in YNAB for reimbursable job expenses. I enter it in there, and I save the tangible receipt to turn in. If it's mileage, I use google maps or mapquest.
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Post by Deleted on Jul 18, 2013 17:31:12 GMT -5
@underwater Chloe,
I recommend the separate credit card just to keep business info away from your personal info. Also, if you ever get audited it's much easier to have everything running through one account.
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raeoflyte
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Post by raeoflyte on Jul 18, 2013 18:47:08 GMT -5
Reo, Are you on commission? Wouldn't things like mileage, dinners et cetera be deductible against your income? I am, but I am paid with a w2. Is that possible when I'm not 1099?
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Deleted
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Post by Deleted on Jul 18, 2013 18:57:44 GMT -5
I don't know. I would talk first with your fellow loan officers and then to a tax expert. Or maybe go over to the Tax Talk board and ask MWCPA. Are you employed by a bank? Do you visit customers at their homes or do they come see you? If you have to meet folks that mileage could add up.
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Deleted
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Post by Deleted on Jul 18, 2013 19:26:00 GMT -5
Since I work for the government, I cannot use a CC for a reimbursement. Even debit cards are questionable. I have a category in YNAB for reimbursable job expenses. I enter it in there, and I save the tangible receipt to turn in. If it's mileage, I use google maps or mapquest. Are you saying, Chloe, that you have to pay cash for anything that will be reimbursed? That doesn't sound fair. When I went to a conference last summer, the hotel bill was $600. I spent $50 on gas. And so on. Expecting me to front $1000 worth of expenses in cash while waiting for reimbursement wouldn't have made me very happy. Fortunately, I could use my credit card.
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raeoflyte
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Post by raeoflyte on Jul 18, 2013 20:00:54 GMT -5
I don't know. I would talk first with your fellow loan officers and then to a tax expert. Or maybe go over to the Tax Talk board and ask MWCPA. Are you employed by a bank? Do you visit customers at their homes or do they come see you? If you have to meet folks that mileage could add up. I work for a lender, not a bank. Clients (as in borrowers) will come to me for the most part, but I'll drive out to builder and realtor sites to do marketing. I don't think it will be too many miles, because of my set up, but definitely enough that I need to track. Now that I think about it, the company sponsored marketing comes out of my check, but I don't think I can add to it. But I'll check.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Jul 18, 2013 20:13:33 GMT -5
Since I work for the government, I cannot use a CC for a reimbursement. Even debit cards are questionable. I have a category in YNAB for reimbursable job expenses. I enter it in there, and I save the tangible receipt to turn in. If it's mileage, I use google maps or mapquest. Are you saying, Chloe, that you have to pay cash for anything that will be reimbursed? That doesn't sound fair. When I went to a conference last summer, the hotel bill was $600. I spent $50 on gas. And so on. Expecting me to front $1000 worth of expenses in cash while waiting for reimbursement wouldn't have made me very happy. Fortunately, I could use my credit card. And me neither, though I could actually afford it now. My first five years teaching, I couldn't. It seems to be a new IRS regulation. If I use my Chase card to pay that $1000 and I get 1% back, I've gotten a $10 benefit from working for the government. The IRS says no to that now. In regards to hotel rooms, the district either prepares a check for the exact amount or gives me a district credit card. Once, they gave me VISA gift card. Hey we're very nervous about that. They also have gas cards, but if I use that, I don't get reimbursement for mileage.
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Deleted
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Post by Deleted on Jul 18, 2013 20:54:08 GMT -5
I guess it's new this year, then, but our district hasn't said anything about it. We are expected to front everything except the registration fee. I didn't go anywhere this summer, but I have friends who did. I'll have to ask them about it.
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tskeeter
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Post by tskeeter on Jul 19, 2013 14:27:46 GMT -5
My new job is awesome, but I'm starting to have expenses. Some will be reimbursed by the company and some won't. My entire budget tracking system has gone to shit, but I at least need to do this well so I can get reimbursed everything possible, and hopefully have an easy time come tax season to claim the rest. What do you all do? Separate Debit/credit card for expenses? Paper receipts? Mileage log? I'd like to go paperless as much as possible. I was thinking I could email pictures if receipts to myself, but that seems complicated since I'll need to track what is reimbursed and what isn't. A giant spreadsheet I suppose, and a separate file for receipts? The bottom line here is that you need to figure out your unreimbursed business expenses for each tax year. To do that, I would take a summary level approach, rather than try to match individual reimbursements back to individual receipts and invoices. Keep your expenses receipts, invoices, and mileage logs. Keep your reimbursement information. When preparing your taxes, add up your business expenses during the year and add up your reimbursements during the year. Deduct the reimbursements from the expenses and what remains is your unreimbursed business expenses. Don't worry about paying for something in one tax year and being reimbursed for it in the following year. You account for the expense in the year that you paid the bill. And you account for the reimbusement in the year you are reimbursed. Easy, peasy.
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