How to categorise rent expenses

AjsmithAjsmith Member Posts: 3

Hi guys,

Sorry for the basic accounting question but how should I categorise rent expenses? I charge my business a monthly fee to reimburse myself for the cost of power/internet etc at home, and I've been adding this fee as an account payable in Transactions. It's not showing up in the Aged Payable as overdue amounts, which makes me think I'm categorising it incorrectly. Should it be charged as a bill under Purchases instead? Any advice, greatly appreciated!

Comments

  • MikegMikeg Member Posts: 132 ✭✭

    Are you a single member LLC (Sch C) or S-Corp?

  • AjsmithAjsmith Member Posts: 3

    Sorry - I don't really know what those mean. I'm based in NZ so we probably have a different regulatory system down here. If it helps, I'm just a freelance writer, operating on my own. I have a registered business but it's certainly not an LLC (not sure what the other one is).

  • MikegMikeg Member Posts: 132 ✭✭

    Yep, I'm in the US and they are usually shown in the owners equity. Meaning a contribution to the business. Best of luck.

  • AjsmithAjsmith Member Posts: 3

    OK - that makes sense. Thanks very much!

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