---
title: Handling expenses paid personally
description: Handling expenses paid personally
---
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# Handling expenses paid personally
## How to record a personal expense and get reimbursed
If you pay a business cost using your personal bank account or personal card, record it in Xero as a director's expense to ensure it is properly claimed and reimbursed.
### How to record a personal expense
Create the bill or expense in Xero with the supplier's details, the correct account code, and the VAT code. In the payment section, select the Director Loan Account (DLA) as the payment account (not the business bank account). This records that the company owes you the money.
### Getting reimbursed
When you transfer money from the business bank account to your personal account to reimburse yourself, reconcile the bank payment against the Director Loan Account in Xero. This clears the balance on the DLA and correctly records the cash movement.
đź’ˇ **Good to know:** Keep a clear separation between personal and business spending. Paying business costs personally occasionally is fine but doing it regularly makes your accounts harder to track. Set up a business debit card to use for all business purchases.
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