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Hello Community Users! Here is the Quickbooks help article for the journal entry for paying business expenses with personal funds. If you can not see the equity account mentioned it will be a case of going to the chart of accounts section and clicking on new to create it, selecting the most relevant option from the detail type. We'd always recommend speaking to an accountant before doing this as they may want you to record this a different way depending on the circumstances. Any questions feel free to just ask them here.
I can help you post business expenses paid via your personal bank account, DawnInc.
When you reimburse a personal expense, you can record it as a cheque or an expense. I also recommend reaching out to an accountant so they can advice what accounts will be affected. I'll show you how:
First, record the business expense you paid for with personal funds:
We can reimburse the expense via a Cheque or Expense:
Cheque
For Expense, still go to the +New button and click Expense. Enter the same details as I've provided when using cheques.
You can refer to this article if you need more help with mixing business and personal finds.
Let me know if there's anything else that you need help with. Take care!
Many thanks for your response,
On the first line, in the account column , do I enter the name of the business account ? Also i am struggling with entering the journal entry detail on the second line for owner or partner equity . Neither one appears as an option to select in the drop down?
thanks for further clarity
regards
Dawn
Hello Community Users! Here is the Quickbooks help article for the journal entry for paying business expenses with personal funds. If you can not see the equity account mentioned it will be a case of going to the chart of accounts section and clicking on new to create it, selecting the most relevant option from the detail type. We'd always recommend speaking to an accountant before doing this as they may want you to record this a different way depending on the circumstances. Any questions feel free to just ask them here.
Hi,
I have been trying to follow the instructions to log in business expenses I paid with personal funds through a Journal Entry but the form does not allow me to input the amounts both in credit and debit fields as instructed. I also wanted to ask if these expenses will be reflected on the business books. In my case these are travel expenses. If I log them in as Owners Equity, will they also be considered as deductible expenses in my tax return? Thanks.
Hi LO77,
Thank you for joining the conversation and for doing the instructions. I assume you used the article about paying for business expenses with personal funds as a reference.
When you journal the expense against owner's equity, include the VAT in the expense line. Let's say the expense is 2000 plus 20% VAT making it 2400. Basically, you'd input 2000 with 20% VAT in the expense line, as shown below. Then, input 2400 in the owner's equity line to balance the entry.
Provided that you choose the right VAT code, the journal will increase your tax-deductible expenses in your VAT return. You can take a screenshot of your VAT return before and after recording transactions.
The entries in the screenshot are for sample purposes only.
Feel free to go back to this thread if you have other questions in mind.
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