A reminder that when an owner-employee uses a company credit card for a personal expense, there are complex income-tax considerations. Usually, you should make no distinction in how you record personal use by an employee v. owner-employee: Record the amount of the personal expense as a receivable from the owner-employee, and close it out when the owner employee provides the reimbursement. 

If an owner-employee opts not to reimburse the company, consult your company’s tax advisor. Similarly, an owner-employee who uses a personal credit card to pay a company expense should be reimbursed by the firm. Debit an expense account and credit a liability account. If the owner-employee sees the payment as a long-term loan to the firm or an additional investment, complex tax consequences come into play. Here too, consult your firm’s tax advisor.

Source: The American Institute of Professional Bookkeepers
Image credit: Unsplash.com