Recording transactions without a bank account

What do you choose in payment account drop down menu to record an expense when your bank account is not linked?

Hi there, RN5786.

Thanks for joining the thread. I'm here to provide some insight regarding the payment account.

You'll need to set up one Bank account in QuickBooks so you'll have an option to select when recording expenses. Rest assured, as qbteachmt mentioned, you don't necessarily need to link the Bank Feeds to QuickBooks. The steps below will guide you through the steps on how to set this up:

1. From the Lists menu, choose Chart of Accounts.
2. Click the Account drop-down button, then select New.
3. Choose Bank and click Continue.
4. Name the account.
5. Click the Opening Balance button.
6. Enter the Statement Ending Balance and Statement Ending Date.
7. Click Save & Close.

That should do it. Once you've created the account, you'll be able to record the expense with the right payment account in no time.

Let me know if there's anything else I can help you with. I've got your back. Thanks again for dropping by, wishing you and your business all the best.

I have the same question and this seems to be an easy solution. 

So I would open a Bank account with opening balance $0, and statement ending balance $0?

Not a real bank account, just one to facilitate these expenses?

I have the same question and this seems to be an easy solution. 

So, I would create a bank account with $0 balance and $0 Ending Statement Balance? 

Not a real bank account just one to facilitate  entering these expenses? 

Thanks for joining this thread, PATMCNEANY.

I'm here to help you set up a bank account in QuickBooks Desktop.

You have the option to enter a zero balance for the sample bank account. However, once you enter and pay the expenses using this account, it will create a negative ending balance.

If you want to avoid this, you'll want to enter a positive value of the opening balance when setting up the bank account. 

Here are some articles about the workflows in QuickBooks:

• Accounts Payable workflows in QuickBooks Desktop
• Accounts Receivable workflows in QuickBooks Desktop

That should answer your concern. If you have follow-up questions about QuickBooks, please let me know. I'm always happy to help. Have a good day!

Then once you have these expenses paid, what do you do with the remaining funds in the bank account so that you can close the dummy account, and how do you show the IRS that it was just a dummy account for startup expenses?

Hi there, southernbelle84.

All your personal transactions should not reflect in Quickbooks.

You only have to deposit the returned amount that you've used in your business from the personal account. You may want to delete those transactions to get a zero balance.

Alternatively, you can create a journal entry to record the expenses you paid against your equity account. You'll use an equity account because it's your personal funds.

When you reimburse yourself, you can create an expense or a check transaction. The source of funds will be your business account and you can enter your equity account in the Expenses table. This will replenish your equity account.

For presenting the dummy account to IRS, I recommend reaching out to your accountant. 

Thanks for dropping by, let us know if you need anything else. 

I have an account that is real and will have deposits and expenses coming out of it like clockwork. However, I would like to track (for myself) invoices for different clients, and services but not "charge" them but still track how much they are "spending." I will be on retainer. A set amount each month. i would like to see by invoice if I invoiced by client, what this would amount to each year at the end of the year. Is there a way to do this without involving real money (showing debits from accounts, etc) ? 

I have QB online.  I have attached my business bank account. However, prior to attaching this ban account, I used $$ from a personal credit card for start-up purposes.  How can I enter those expenses w/out attaching my personal credit card to QB online?

You've come to the right place for assistance,SWetzel96386.

Let me walk you through a detailed step-by-step guide on how to record a business expense paid with personal funds accordingly in QuickBooks Online (QBO). 

When recording your business expenses paid with personal funds, you'll have to create a journal entry as your first step. Here's how:

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

After that, you'll have two options on how to record the reimbursement. You can either record it as a check or expense it in QuickBooks Online (QBO). 

I've added this article to learn more about creating an expense in QuickBooks Online: Enter, edit, or delete expenses.

Keep me posted when you have additional concerns about handling your expenses. I'm always available to attend to your queries. Have a nice day ahead!

Prior to receiving your reply to my question, I did some research and found a site that informed me to download these expenses from my personal credit card account as CSV files and then upload them into QBO after I formatted the CSV files as required.  

I entered them this way.

Is this wrong OR is this simply a different way to enter them.

Thank you for returning to this thread, SWetzel. Both approaches can accurately capture expenses from your personal credit card accounts. 

There are ways to record expenses from a personal credit card account in QuickBooks Online (QBO). Using Journal Entry and manual upload using a CSV file are considered correct and valid.

With the Journal Entry method, you can directly input individual transactions into QBO, which can be useful for recording specific expenses or when detailed tracking is required.

On the other hand, the manual upload using a CSV file allows you to import multiple transactions at once, streamlining the process for larger sets of expenses and saving time. We can use this article to make sure you categorize them properly: Categorize online bank transactions.

Please let me know if you have more concerns or need more clarification about recording transactions in the program. Take care and stay safe.

When I created these expenses QBO, I created a personal credit card account in QBO.  Since I created this account, should I enter an additional line on the same transaction and input a negative (same) amount to allow that account to zero out?  I have read that I can add it as "Owners Equity" however, I do not have that an Owners Equity category in QBO dropdown.  Perhaps I was reading an old thread?

If I do nothing there will remain a negative balance in this newly created account.  

What is the best resolution to balance this account?

My response has been marked as resolved.  However, I did not receive any response since my last post.  My issue is not resolved.  It is ongoing.  Please respond...

Is this one of those unanswered questions???

Will the expenses inputted in the journal entry show up on reports such as profit and loss and balance sheet for income tax purposes?Thanks

Hello there, @peasinapod.

Yes, Journal entries will be in a Profit and Loss report.

It will directly hit your account. Thus, it will show on the report on either a cash or accrual basis. 

I'm adding this article as your preference in viewing the Transaction Journal report. It provides a view of the amount and accounts not visible in the transaction created.

Don't hesitate to let me know if you have questions about Journal Entries. I'm always here to help. Have a great day.