Hello, I have a question with regards to categorizing credit cards payments. I Used the bank upload function in import all my credit card transaction into QBO, however the payments for the credit card were made from my per
Your post cut off, but I think you mean that you paid the CC with personal money, if so
There are several ways to do personal payments, this is my preference (assumes you are taxed as a sole proprietor or a partnership)
Create a cash type bank account called owners deposit the funds in this owners cash bank account using owner equity investment as the source account for the deposit make the payment using the owners cash bank account
Thanks for your answer. I have a follow up question. If the credit card payment that uploaded is paying both business and personal charges will I need to split the payment so I’m only recording the Payment for the business related charges?
Thanks for the clarification and prompt response, @Dvorak24.
You can split the transactions and ensure to put all personal matters to your Owner’s equity account. This way, you’ll be recording both the personal and business-related charges. Let me guide you how.
Also, moving forward, it would be best not to mix your personal stuff and business matters. This way, we'll avoid any delays and errors in reconciling your accounts in the future
To start with:
Sign in to your QuickBooks Online (QBO) account.
Go to the Banking or Transactions menu and select the Banking tab.
Select your preferred bank account and go to the For review tab.
Locate and select the Credit Card payment and click Split.
Select a vendor from the Payee drop-down menu.
From the CATEGORY column, select the appropriate accounts.
Split the amount of the transactions from the AMOUNT column.
Click Apply and accept.
I’d also recommend checking with your accountant in choosing the right accounts in recording this. This way, we’ll ensure your accounts are well accounted for.