Overview

An Accountable Plan allows S Corp owners to receive reimbursement from the company for their home office expenses, auto mileage, and per diem expenses. It is only for mixed-use expenses that are paid from the owner's personal checking/credit accounts. 100% business expenses must always be paid directly from a business checking/credit account that is connected to QBO. For a more detailed explanation please see this article.

Action

  1. Complete this pdf once every year.
  2. Complete this spreadsheet of expenses every month. Click the link and download a copy to your computer. If you are a google user, click "open with" and select "google sheets". Please don't request edit access.
  3. Save the spreadsheet, along with backup receipts and any documentation associated with the expenses.
  4. Transfer funds from your business checking account to your personal checking account with a check or an online transfer. The transferred amount must match the worksheet amount "Total Employee Reimbursement". Save a copy of the check or a print-to-pdf of the online transfer as documentation of payment.
  5. In QBO, when the transaction appears on the banking screen, categorize it as "Employee Reimbursement".
  6. Save all documentation for three years.
  7. It is a main feature of the accountable plan that the worksheet and the funds transfer occurs consistently every month. You may repeat steps 1-6 for a one-time only transaction that covers prior months. Go only far back as your S Corp effective date but not beyond the first of this year. You can find your S Corp effective date on your form 2553 that is in the documents section at app.collective.com. If you don't find it there please slack @karmen on your main slack channel.

Did this answer your question?