how to handle invoice payment cheque in owner's name and deposited in peronal account

[SRGN]

A customer paid for services rendered using a cheque made out to owner instead of company.  Owner deposited in personal account and used to pay down expenses owed.  How do I correctly book the payment of the invoice and the payment of the expenses?

[LauraAB]

Hi SRGN,

Thanks for the details about how the transaction occurred. Recording a mix of business and personal accounts requires a bit of accounting knowledge and maneuvering. If you're not an accountant yourself, I recommend speaking with one before entering these kinds of transactions. I want to make sure the information is recorded correctly and your books balance. We also have accountant users her in community that may be able to offer some insight.

Take a look at the following articles about how to pay for business expenses with personal funds and about mixing business and personal funds to learn more about how you may be able to handle these kinds of transactions.

I've also got an article here about how to manage an accountant user in QuickBooks Online if you'd like to connect with an accountant right in the program.

I hope that helps. Stop by again if you have more questions!

[Rustler]

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@SRGN wrote:

A customer paid for services rendered using a cheque made out to owner instead of company.  Owner deposited in personal account and used to pay down expenses owed.  How do I correctly book the payment of the invoice and the payment of the expenses?

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Assuming the company is not taxed as an ltd company

use receive deposits, select the invoice and enter the amount

use make deposit, select that payment, then'

on the next line select owner equity drawing, and enter the amount as a negative number, save the zero dollar deposit.

IF, if the company is taxed as an ltd company, you do the same thing, but use a director/shareholder liability account instead of the equity account.