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anamenino
Level 2

Record a business expense paid with personal cad

Hi everyone, 

 

At the beginning of our business, we had a few expenses which we paid with my personal debit card. I do not want to get this reimbursed, as I see them as initial investment, but I would like to record them properly. 

 

I have seen several suggestions. One being, to record the expense as an expense (eg. +10£ at Amazon) and at the same time add the same value to the owner's investment/equity account (-10£ at Owner's Equity). While this seems to work, I have noticed when I create a report or check the supplies list, the amount spent on Amazon does not reflect this value. Something else that is also strange, is the fact that I need to register that expense into a payment account. would it not make sense that you could just select the owner's equity? 

 

Has anyone found a better way to deal with this issue? Or is there something else I am missing?

 

Many thanks in advance, Ana 

Solved
Best answer August 18, 2021

Accepted Solutions
Certified gold trainer
Level 3

Record a business expense paid with personal cad

Hi Ana

 

The easiest way to achieve what you want is to set up a Directors current account as a bank account, ( a virtual bank account - but called a bank account within quickbooks) then pay the expenses out of that.  This will always be overdrawn on Quickbooks as it will represent the money that the company owes you.

 

I hope this helps

 

Martyn A Smith A.F.A, M.I.P.A

Institute of Financial Accountants

www.themobileaccountant.co.uk

Certified Gold Quickbooks Trainer and Accountant

www.quickbookstraininguk.co.uk 

View solution in original post

1 REPLY 1
Certified gold trainer
Level 3

Record a business expense paid with personal cad

Hi Ana

 

The easiest way to achieve what you want is to set up a Directors current account as a bank account, ( a virtual bank account - but called a bank account within quickbooks) then pay the expenses out of that.  This will always be overdrawn on Quickbooks as it will represent the money that the company owes you.

 

I hope this helps

 

Martyn A Smith A.F.A, M.I.P.A

Institute of Financial Accountants

www.themobileaccountant.co.uk

Certified Gold Quickbooks Trainer and Accountant

www.quickbookstraininguk.co.uk 

View solution in original post

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