We issue company credit cards to employees to use for travel expenses, miscellaneous purchases for projects, etc. We had a newer employee recently use his personal credit card to purchase about $3,500 in materials for a project and turned it in on an expense report for reimbursement. When I asked him why he didn't use his company issued credit card, he said he'd like to continue to use his personal credit card in order to get the points/travel rewards and get reimbursed via expense report. He asked if that would be OK. I have never been asked this question before and told him I'd get back with him.
From an accounting standpoint is there any reason an employee could not use his personal credit card for company purchases and be reimbursed? Either way it's a business expense whether it's paid to a credit card company or to an employee via expense reimbursement. So I can't think of a reason why we couldn't do that. But I'm not a CPA so maybe I'm missing something. Any thoughts? Thanks all.
Martha K. Meyer, Controller
Resource Commercial, Inc.
mmeyer@resource-commercial.com------------------------------
Martha Meyer
Dallas TX
(214) 478-3825
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