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Hi All,
Our company is relatively new, and during the first year, we were using our personal credit cards for business expenses. The company hasn't yet paid the owner.
The credit card was used for personal expenses as well.
How do I record these business expenses made through a personal credit card?
Thank you!
Hi Sharky21,
it's a pleasure to see you in Community. Welcome! Although it's not recommended to mix business and personal expenses, QuickBooks Online has the versatility you need to ensure your transactions are recorded with confidence. I'd be happy to assist!
The first step is to record the business expense that was paid with personal funds with a journal entry. Here's how;
1. Open + New from the left menu
2. Select Journal Entry
3. On the first line, choose the Expense account for the purchase and enter the Purchase amount in the Debits column
4. On the second line, select Partner's equity or Owner's equity
5. Enter the same purchase amount in the Credits column
6. Hit Save and close.
You can reimburse the funds as a cheque or expense. Follow these steps for the best fit;
By cheque;
1. Select + New and then Cheque
2. Choose a Bank account to reimburse the personal funds from
3. In the Category column, select Partner's equity or Owner's equity
4. Enter the amount to reimburse
5. When finished, hit Save and close or Save and new.
As an Expense;
1. Select + New and then Expense
2. Choose a bank account to reimburse the personal funds
3. In the Category column, select Partner's equity or Owner's equity
4. Enter the amount of the reimbursement.
5. Hit Save and close
Here's a helpful guide for your reference, to assist with recording personal expenses paid with a business credit card or bank account.
If you have any other questions, please don't hesitate to reach back out. We'd love to help!
Thank you Trish_T for Your reply!
Still I am a bit confused.
What if I used the credit card for business expenses, but the company paid them back ( through transfer) a few months later ( half a year later).
I've heard about the option " due to shareholder " but I don't really know how to use it, how does it work. Maybe you can help me. Thank you!
Hi there Sharky21,
That could possibly be used to help keep track of the money owed. Since this money movement isn't automatically programmed in QuickBooks, I recommend reaching out to an accountant for assistance with representing this in your books. They'll be able to specify which exact transaction types to use and accounts to affect in order to make sure that your books are balanced. You can invite your accountant to your books by going to the My accountant tab. In that section, you can also find an accounting professional who has experience using QuickBooks near you by clicking on the Find a pro to help button.
If you have any other questions, feel free to reach out here.
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