The answer to your question would depend on the nature of the expense for which the shareholders are being reimbursed. Did they provide services to the corporation? That would be compensation for services, not a reimbursement. Did they purchase something for use by the corporation? Then the item purchased should be recorded as an asset or it should be expensed.
To correctly analyze your business expenditures, you need to focus on the purpose for the payment, not the recipient of the funds.
If you are disbursing funds to shareholders for non-business purposes, those disbursements need to be properly recorded as dividends, if being paid out of current or accumulated earnings, or return of capital.
