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I would like to add a current liability account (reimbursable expense to shareholder) as a new payment account within the expense screen. However, the only allowable account types for new payment accounts are current assets, bank accounts, or credit cards. Why would current liability accounts not be an option?
It doesn't make sense that my only options are to (1) categorize my current liability account as a current asset account just to get around this, (2) enter two lines on the expense screen debiting the expense and crediting the liability and ignoring the payment account altogether or (3) entering the expense as a journal entry
Am I missing something?
Hi there DJF-CPA,
Thanks for reaching out about your expenses made with personal funds. QuickBooks online is a great tool able to assist in keeping track of sales and expenses so you know the profitability of your company. I can provide some information about the process to use when entering these expenses.
You can follow the steps in this guide to be able to enter business expenses using personal funds, using a journal entry first, then using an expense or cheque for the reimbursement.
If you have any other questions, feel free to reach out here.
Journal entries work, but it's really not the appropriate method to record reimbursable expenses. Entering via the expense screen allows the expenses to be tracked properly when you run a supplier transaction report
It would be like entering sales or bank deposit transactions using journal entries. Sure you can do it, but you lose reporting functionality
Current liabilities should be added as a payment account option. It's common sense
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