# Reimbursing and journalizing mileage expense.

**URL:** <https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763>\
**Category:** Factual Questions\
**Created:** [March 12, 2013, 10:59pm UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763 "2013-03-12T22:59:35Z")\
**Posts on this page:** 5\
**Page:** 1

<div class="post-metadata">

**Author:** ![WisdomofLife](https://avatars.discourse-cdn.com/v4/letter/w/34f0e0/32.png) [@WisdomofLife](https://boards.straightdope.com/u/WisdomofLife)\
**Post date:** [March 12, 2013, 10:59pm UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763/1 "2013-03-12T22:59:35Z")

</div>

Hello.

I was wondering how a owner of a business reimburses for mileage in the name of the business

Is it  
Debit: Mileage expense  
Credit: Cash

or

Is it  
Debit: Mileage expense  
Credit: Accounts Payable

Thanks for your help.

---

<div class="post-metadata">

**Author:** ![Nametag](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/nametag/32/406_2.png) [@Nametag](https://boards.straightdope.com/u/Nametag)\
**Post date:** [March 12, 2013, 11:08pm UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763/2 "2013-03-12T23:08:12Z")

</div>

Could be either one, sort of. If they’re actually paying money, they have to credit cash. If they’re just processing the expense form, they’ll credit a payable account, probably “Reimbursements Payable,” but I think it could be “Payroll” for a small firm. Not “Accounts Payable” though.

ETA: They’ll credit cash and debit the payable account when they issue checks.

---

<div class="post-metadata">

**Author:** ![Sister\_Vigilante](https://avatars.discourse-cdn.com/v4/letter/s/9de0a6/32.png) [@Sister\_Vigilante](https://boards.straightdope.com/u/Sister_Vigilante)\
**Post date:** [March 13, 2013, 1:11am UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763/3 "2013-03-13T01:11:25Z")

</div>

I get different checks for mileage and regular pay, if that helps.

---

<div class="post-metadata">

**Author:** ![Senegoid](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/senegoid/32/6606_2.png) [@Senegoid](https://boards.straightdope.com/u/Senegoid)\
**Post date:** [March 13, 2013, 1:29am UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763/4 "2013-03-13T01:29:06Z")

</div>

I wouldn’t imagine chalking it up to Payroll.

Payroll has all kinds of implications… Taxable income for the employee; subject to FICA and what-not other taxes; stuff like that.

It’s just a reimbursement. Otherwise, what **nametag** said I would think.

---

<div class="post-metadata">

**Author:** ![Nametag](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/nametag/32/406_2.png) [@Nametag](https://boards.straightdope.com/u/Nametag)\
**Post date:** [March 14, 2013, 7:02am UTC](https://boards.straightdope.com/t/reimbursing-and-journalizing-mileage-expense/652763/5 "2013-03-14T07:02:07Z")

</div>

> [@Senegoid](#):
>
> I wouldn’t imagine chalking it up to Payroll.
> 
> Payroll has all kinds of implications… Taxable income for the employee; subject to FICA and what-not other taxes; stuff like that.
> 
> It’s just a reimbursement. Otherwise, what **nametag** said I would think.

Taxes and other withholding are not calculated from the balance of the payroll account; each employee needs to have a separate account for that (preferably in a separate ledger). Small, privately held firms are not obligated to follow any particular rules of bookkeeping or accounting, as long as the books are honest and accurate, and as long as the figures required for, say, accurate payment of business taxes can be extracted from them. Simplified bookkeeping using a minimum of accounts is often easier for such a company, though it may make a real accountant pull his hair out.