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Owner deposited personal funds into his business account to help with his business expenses. What is the best way to classify this deposit. Are business is a S-CORP.

 
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QuickBooks Team

Owner deposited personal funds into his business account to help with his business expenses. What is the best way to classify this deposit. Are business is a S-CORP.

I've got you covered, @vero714.

 

You can enter a journal entry to record business expenses you made with personal funds. Let me walk you through the process.

 

Please know that we don't recommend mixing business and personal expenses when doing business. But since you used your personal funds to pay your business expenses, let's follow the steps below to properly record it in your QuickBooks Online (QBO).

 

Firstly, let's record the business expense you paid for with personal funds. Here's how:

 

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

Once you decide you reimburse the money to your personal account, you can create either a check or an expense. Let me guide you how.

 

  1. Click the + New button, then select Check or Expense.
  2. Choose a bank account to use to reimburse the personal funds.
  3. Select the Partner's equity or Owner's equity from the Category section.
  4. Enter the amount and the necessary details, then click Save and close.

Here's an article you can read for more details: Pay for business expenses with personal funds.

 

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please know you can continue to reach me here with any additional questions. Thanks for coming to the Community, wishing you continued success.

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