Could you please elaborate as to why the expense form is used to record personal purchases paid for with company funds? These types of transactions are not an expense to the business. They are transfers between two balance sheet accounts (the business checking account and owner's draw.) As such, it makes more sense to use the write check, bank transfer or journal entry functions. Of the three options, I have found the write check function to be the most appropriate. It accomodates debit card and ach transactions along with class tracking. Not all money out or purchase transactions are business expenses, however, when these types of transactions flow through a business checking account they must be accounted for. This is key to accurate reporting and recordkeeping. Because we are working with the business's financial records, only true business expenses should be entered as an expense type transaction.
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Could someone please explain to me why you would enter personal purchases paid from a business account as an expense when it is not? Furthermore, why you would use the write check function to record such purchases when they are paid by debit card or thru ACH? I believe I may be getting hung up on terminology and the difference between expense and expense accounts in Quickbooks Online. Any applicable information that would help to clarify this for me would be greatly appreciated.
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