I started a small business at home and try my best to track all the transactions. I use business cheque or debit card whenever I can; however, from time to time, I use cash and personal credit card for some services and purchases. I created a reimburse form for those expenses. I am starting to use computerized bookkeeping software and don't know how to deal with the reimbursement, especially in the general ledger and tax purposes. I am very new to proper business bookkeeping. Can anyone provide some advice please?

When owners of a sole proprietorship take money out for their personal use, it is called a draw. Draw is classified as an equity account. If you are reimbursing yourself for a business expense, such as office supplies, cut yourself a check and classify the expense as office supplies. You can cut a check for multiple classifications. Are you using Quickbooks?
Also, you can get free business advice and assistance with your local Small Business Development Center. Go to www.sba.gov to find and SBDC office near you.

Make copies of all the receipts you want your business to reimburse you for. Categorize and subtotal the receipts. Write a check with yourself as the payee, detailing out the subtotals(Your software will make the appropriate entries in the GL when you write the check). Attach the receipt copies to the check stub and keep for your business files, retain the original receipts with your personal records.


Example:
You have the following receipts:

Office Supplies = $25.50
Business Meal = $15.00
Office Supplies = $126.25
Office Supplies = $32.00
Inventory = $56.00

The reimbursement check would read as follows:

Payee = self
Check Total = $254.75

coding subtotals:
Office Supplies = $183.75
Business Meals = 15.00
Inventory = $56.00

To post these items in the GL, just put them in the category they belong in. If you have a separate GL for each vendor, put them under the vendors ID, if you have general GL's such as "office supplies" enter them under that GL and in the description put who the payment was to originally and what for (ie: "Staples / Ink Cartridge"). At tax time they will be in the correct category and accounted for, and if you are a sole proprietor that is the most important thing since all unused funds and draws will be considered income for you anyway. Just keep the receipts in with your business receipts and mark that they are for the business. If you have any other questions or need more info, just ask and I'll try to answer them. I do bookkeeping/accounting for a few businesses.

Thanks everyone for helping out. I appreciate your advice.
The information is very helpful. Now I got more questions. I did not register as a proprietor, but a corporation. When I input the expense in categories, then how should I pay the reimbursement since the payee of the cheque will be in my name. Should I create an additional account for reimbursement? How do I balance the GL?
Thanks a lot.

Yes, create a reimbursment account (GL) and as you enter each amount, make sure the GL account you are applying it to is the correct category.

Example: in payment line -
Office Depot (apply to GL account)60000 $25.00

Are you registered as a S Corp, Corp, LLC? Are you using Peachtree or Quickbooks? I could help better if I knew.

Yes, I registered as a Corp. And I am using accounting program of Dynacom, a accounting software company based in Quebec (Canada). It helps with the tax and payroll regulations in Cananda quite well.
I assume that the reimbursement account (in GL) would be under Liabilities then?
Thank you so much for helping out.

It should be under "expenses", if you don't have "expenses" with this program (I am not familiar with it) you need to use "liabilities".