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Paying business expenses with personal funds

I am a relatively inexperience QuickBooks user. I'm starting a new business and paid some business expences from personal funds before opening my business bank account.

 

Now that I have a business checking account, how do I record those expenses in Quickbook and pay myself back?

 

I entered bills for each expense and recorded them all as paid. But if just write myself a check, I think Quickbooks will deduct those expenses from my checking account twice.

 

I use QuickBooks Desktop Pro 2017. Thanks for your help!

Best answer a month ago

Accepted Solutions
Established Community Backer ***

Re: Paying business expenses with personal funds

You say you entered bills and marked them as paid. How did you do that without paying them?

 

There are several ways to do owner pays bills, this is just one of them

create the bill for the expense, on the account tab as the last item select the owner equity investment account and enter the total amount as a negative, save the zero dollar bill.

 

to pay yourself back, write a check and use owner equity drawing as the expense (reason) for the payment

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

2 Comments
Established Community Backer ***

Re: Paying business expenses with personal funds

You say you entered bills and marked them as paid. How did you do that without paying them?

 

There are several ways to do owner pays bills, this is just one of them

create the bill for the expense, on the account tab as the last item select the owner equity investment account and enter the total amount as a negative, save the zero dollar bill.

 

to pay yourself back, write a check and use owner equity drawing as the expense (reason) for the payment

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

Experienced Member

Re: Paying business expenses with personal funds

Thanks! I think I've fixed it.