Ask an AI Accountant

Yes, you can reimburse yourself for business expenses you paid out of your personal account. It's important to keep clear records of these transactions, including receipts and a note explaining the business purpose. When you reimburse yourself, make sure to categorize the transaction as an owner's draw or a similar category in your business accounting. This isn't a taxable event, but it's crucial to keep clear records to show that these were legitimate business expenses if the IRS ever asks. As for the business loan, you can use it for any legitimate business purpose, including reimbursing yourself for past expenses. Just make sure the loan agreement doesn't have any restrictions on how the funds can be used.