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November 20, 2022
Question

Expense Reimbursement

  • November 20, 2022
  • 2 replies
  • 39 views

My husband and I have a small electrical contracting business.  Occasionally he will make material purchases for jobs by using our personal Lowe's credit card.  He has been reimbursing the Lowe's card by either using the business checking account or business credit card to directly pay the Lowe's credit card. How do I record this in Quickbooks since the Lowes card is not a business card?

2 replies

Bryan_M
QuickBooks Team
November 20, 2022

Thank you for connecting with us here in the Community, @Tracey11_22022.
 

I'll gladly show you how to record your reimbursements from your business card to your personal Lowe's credit card in QuickBooks.

 

Although, reimbursements are being done on your end. There's still a need to follow the correct steps in recording it, to avoid account discrepancies.

First, record the business expense you paid for with personal funds.

Here's how:
 

  1. Click + New.
  2. In the Other column, click Journal entry.
  3. In the first line, select the type of expense account for the purchase. Then, type the purchase amount in the Debits column.
  4. In the second line, select Owner's equity. Then, type the same purchase amount in the Credits column or it will automatically be indicated. You can also enter "Reimbursement" in the Memo section.
  5. Click Save and close.




 

You can click this link for the next step which is to record the reimbursements as an expense. 

Furthermore, I also recommend seeking guidance from your accountant for a better understanding of recording reimbursements with your personal funds.

 

For future reference, if you want to learn how to handle your personal expense in a business account in QuickBooks Online, you can read through this article: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

 

If you have additional questions about expense reimbursements, feel free to reply to this post. Have a good one!

Rainflurry
Level 11
November 21, 2022

@Tracey2022 

 

Disregard @Bryan_M 's post.  It appears he did not understand what you were asking.  This is a charge to a personal cc but the cc balance is paid off with business funds (not personally) so it is not an entry to owner's equity.

 

You can record this just as if it were a business credit card.  As long as you keep receipts, you can substantiate the charge as a business charge.  It's strongly suggested you get a business card and use that for business purposes.  It makes things easier if you ever get audited, especially when you buy items from Lowe's or somewhere that you purchase items for both personal and business use.