Telling the Story Behind the Spend

Sometimes navigating finances can seem so daunting for business owners. It's often because the numbers aren't telling the business story. Many entrepreneurs go into business driven by passion, but when the financial side becomes overwhelming, that passion can quickly turn into frustration.

This is where a good bookkeeper makes all the difference. Not just someone who enters numbers, but someone who helps interpret the story behind the transactions. Communication is vital to running a business, and understanding the purpose behind each expense or deposit gives clarity, control, and confidence.

Here's a simple but powerful example of how to properly handle reimbursements when someone pays for a business expense out of pocket. Whether it's a team member grabbing supplies or a friend helping with a computer purchase, having a clean, structured process builds trust and ensures accurate books.

Story: How Zachary Helped – and Why It Mattered

Let’s say Zachary is a close friend for illustration purposes, and someone who’s always believed in the mission behind the business. One day, during a particularly busy week, a new laptop was needed for work but there wasn’t time to get it sorted out.

Zachary offered to purchase the laptop upfront and send the receipt so he could be reimbursed later. It was a generous and practical act — and from a bookkeeping standpoint, it had to be recorded properly to keep the books clean and accurate.

Here’s how the reimbursement process worked:

Step 1: Receipt Collection

Zachary shared the store receipt. The total was $1,130.00 — made up of $1,000.00 before tax and $130.00 in HST. The receipt showed the date, item description (a MacBook), and tax breakdown.

Step 2: Supplier Record Setup

Since Zachary isn’t an employee or regular vendor, a supplier profile named “Zachary (Reimbursement)” was created in the accounting system.

Step 3: Journal Entry Recorded

Journal Entry:

Account	Debit	Credit
Computer Equipment	1,000.00
GST/HST Recoverable (ITC)	130.00
Reimbursements Payable – Zachary		1,130.00

Step 4: Reimbursement Processed

Zachary was reimbursed via e-transfer. The following journal entry was made:

Journal Entry:

Account	Debit	Credit
Reimbursements Payable – Zachary	1,130.00
Bank		1,130.00

Step 5: Receipt Attached

The receipt was uploaded to QuickBooks and clearly labeled for transparency and audit readiness.

Story: Hindy Buys Office Supplies

Now let’s look at another example — this time involving an employee.

Hindy works part-time and supports a lot of day-to-day admin tasks. One month, the office ran out of printer paper, sticky notes, and shipping labels. Instead of waiting for a purchase order, Hindy placed an order on Amazon using her personal credit card and brought the supplies in the next day. She also saved the digital invoice and shared it promptly.

The total came to $113.00, including $100.00 worth of supplies and $13.00 HST.

Step 1: Receipt Collection

Hindy emailed the Amazon invoice — it had the date, itemized list, and tax breakdown.

Step 2: Supplier Record Setup

Since Hindy is already set up in the system as an employee, a separate supplier record labeled "Hindy (Reimbursement)" was created to track her expense reimbursements independently.

Step 3: Journal Entry Recorded

Journal Entry:

Account	Debit	Credit
Office Supplies	100.00
GST/HST Recoverable (ITC)	13.00
Reimbursements Payable – Hindy		113.00

Step 4: Reimbursement Processed

Hindy was reimbursed by direct deposit the following Friday. The bookkeeper recorded the payment with the following entry:

Journal Entry:

Account	Debit	Credit
Reimbursements Payable – Hindy	113.00
Bank		113.00

Step 5: Invoice Attached

The receipt was uploaded to QuickBooks for transparency and audit readiness.

Why This Matters

Keeping track of reimbursements like this might seem like a small detail, but it’s foundational. It helps:

• Ensure expenses are accurate

• Maximize HST credit claims

• Promote transparency and trust when others help out

At One For The Books, bookkeeping is more than organizing numbers. It’s about telling your business story. When your finances make sense, your business can breathe easier — and you can stay focused on what matters most.

If this kind of clarity is what your business needs, reach out. Let’s build financial systems that support your vision.

Tell your financial story the right way — with clarity, confidence, and care.