Separate expense reimbursements from personal drawings in the loan account

A transfer description may not explain its purpose

The company transferred money to your personal account, and the liquidator includes it in a director loan claim. You remember being reimbursed for business costs. Gather the actual expense evidence and obtain legal and accounting advice. Do not assume that describing a transfer as reimbursement resolves the claim, but do not leave a genuine explanation unsupported when relevant records may exist.

Match each asserted reimbursement

Imagine a director who paid for emergency materials using a personal card. Identify the supplier invoice, card payment and later company transfer. Record the dates and amounts separately. If one transfer covered several expenses, show the allocation and any difference. Avoid matching an unrelated receipt to a payment merely because the total is similar or the transaction occurred in the same month.

Keep the evidence intact

business.gov.au recommends keeping reliable records of business transactions and protecting them against unauthorised changes. Preserve original invoices, receipts and statements, with personal information handled appropriately through the adviser. Do not create a backdated expense claim or change a supplier invoice to make it appear that the company incurred a cost when the original document says otherwise.

Source: business.gov.au: Record keeping

Identify incomplete or mixed items

In the materials example, a card transaction may include a personal purchase alongside company supplies. Show the split where supported and flag any uncertainty. Ask the accountant how the transaction was recorded at the time. Do not treat every transfer to a director as either unquestionably personal or unquestionably business-related; the actual evidence needs to be examined item by item.

Give the explanation to the lawyer

Provide the schedule and records with the liquidator's demand. Ask about the legal significance of the expenses, approvals and accounting treatment. A bookkeeping category does not settle liability, and a reimbursement argument may require more than proof that money was spent. Keep any formal response date visible while records are being gathered so the demand is not left unanswered.

Respond with supported distinctions

Have the adviser identify the factual points that can properly be raised and the matters still unresolved. Keep the final response and attachments together. The aim is a reliable explanation of what each disputed transfer was for, rather than a broad statement that you often paid company costs and therefore cannot owe anything on the director loan account.