Client using personal MC for business expenses

I appreciate you sharing details of the situation with your client's financial records, Holly. It's common for business owners to mix personal and business transactions, particularly in the early stages. Let's explore the importance of keeping these expenses distinct and ensuring everything is accurate.

While we don't advise mixing personal and business finances, I understand that it occasionally occurs. When reimbursing a personal expense, you can record it as a cheque or an expense.

Before we proceed with this process, I recommend you set up a business account in the program to separate the transactions.

Once that's in place, let's start by recording the business expense paid for with the personal funds:

1. Click+ New, then select Journal Entry.
2. On the first line, select the expense account for the purchase.
3. Enter the purchase amount in the Debits column.
4. On the second line, choose Partner's equity or Owner's equity.
5. Enter the purchase amount in the Credits column.
6. Hit Save and Close.
    

When it comes to reimbursement, you have two choices: you can either create a cheque or an expense.

To record the reimbursement as an expense, please follow these steps:

1. Click + New, then select Expense.
2. Select a bank account to use to reimburse the funds.
3. In the Category column, choose Partner's equity or Owner's equity.
4. Enter the amount of the reimbursement.
5. Hit Save and close.
    

If you want to record it as a cheque, check out this article: Pay for business expenses with personal funds.

Meanwhile, please know that the undeposited funds are an account that temporarily holds cash or checks that a business has received and is yet to deposit into its bank account. 

To address the sales transactions deposited as undeposited funds, we can create a bank deposit to correct the account. See the attached screenshot for a visual guide.
 

For future reference, if you want to gain a deeper understanding of transaction management and account reconciliation in QuickBooks, check out the following articles:

• Match online bank transactions
• Reconcile an account in QuickBooks Online

The steps outlined above will effectively guide you in managing your client's financial records and keeping personal and business expenses distinct. We're here to back you up if you have more questions or require additional guidance as you navigate these steps.