How to book your hotel accommodation
When recording hotel expenses, it is important to handle the expense correctly depending on which accounting method your company uses. Here we will go over how to record hotels in both the cash method and the accrual method.
Cash method (record upon payment)
The cash method means that you only record business transactions when payment is made.
Example: You pay a hotel with a corporate card for a business trip of SEK 2,500 including 12% VAT.
| Account | Name | Debit | Credit |
|---|---|---|---|
| 1930 | Business account | 2,500 SEK | |
| 5800 | Travel expenses | 2,232 SEK | |
| 2641 | Input VAT | 268 kr |
Invoicing method (post at invoicing and payment)
The invoicing method means that you post both the invoice date and the payment separately.
Example: You receive a hotel invoice for SEK 2,500 including 12% VAT.
Upon receipt of invoice:
| Account | Name | Debit | Credit |
| 2440 | Accounts payable | 2,500 SEK | |
| 5800 | Travel expenses | 2,232 SEK | |
| 2641 | Input VAT | 268 kr |
When paying the invoice:
| Account | Name | Debit | Credit |
| 2440 | Accounts payable | 2,500 SEK | |
| 1930 | Business account | 2,500 SEK |
Tips for correct accounting
- Always make sure the VAT is correct (hotels have 12% VAT in Sweden).
- If you pay with your own card and want reimbursement, book the expense against 2893 – Debts to related parties until the company reimburses.
- Always save receipts and invoices for accounting records.
By following these principles, you can ensure that your hotel costs are recorded correctly no matter which method you use!