posted
Best answer January 26, 2021
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You're almost there, @hillderr_qns.
I've got some ideas on how to record business expenses you've paid using your own money.
First, you'll need to create an expense account to track these expenses. Before you proceed, I'd suggest consulting your accountant for the best advice. If you don't have one, we can help you look for an expert through our Find-an-Accountant tool.
Please follow along below to get this done right away:
- Go to the Accounting menu, and then choose Chart of Accounts.
- Click the New button.
- Select the right expense Account and Detail types from the drop-down. If you aren't sure, you can also seek help from your accountant.
- Enter the purchase name like "Equipment purchases" in the Name field, etc.
- Click Save and Close when you're ready.
Once done, let's create a journal entry to record the said expenses. Let me guide you how:
- Click +New, and then select Journal Entry.
- On the first line, choose the expense account for the equipment, software, or legalzoom purchase.
- Enter the purchase amount in the Debits column.
- On the second line, choose Partner's equity or Owner's equity.
- Enter the same purchase amount in the Credits column.
- Click Save and close.
Then, you can either create a check or an expense to reimburse the money using your "Owner's Bank" account. For more details, please see Step 2 outlined in this article: Pay for business expenses with personal funds.
Also, you can use the Attachments feature to record those PDF's (purchases) for audit purposes.
You'll want run an Account QuickReport to review these entries. To do that, you can go to the Accounting menu again. Select the expense account you've created, and then click Run report.
You can count on me if you need more QuickBooks tips. I'll be here to lend a helping hand.
You're almost there, @hillderr_qns.
I've got some ideas on how to record business expenses you've paid using your own money.
First, you'll need to create an expense account to track these expenses. Before you proceed, I'd suggest consulting your accountant for the best advice. If you don't have one, we can help you look for an expert through our Find-an-Accountant tool.
Please follow along below to get this done right away:
- Go to the Accounting menu, and then choose Chart of Accounts.
- Click the New button.
- Select the right expense Account and Detail types from the drop-down. If you aren't sure, you can also seek help from your accountant.
- Enter the purchase name like "Equipment purchases" in the Name field, etc.
- Click Save and Close when you're ready.
Once done, let's create a journal entry to record the said expenses. Let me guide you how:
- Click +New, and then select Journal Entry.
- On the first line, choose the expense account for the equipment, software, or legalzoom purchase.
- Enter the purchase amount in the Debits column.
- On the second line, choose Partner's equity or Owner's equity.
- Enter the same purchase amount in the Credits column.
- Click Save and close.
Then, you can either create a check or an expense to reimburse the money using your "Owner's Bank" account. For more details, please see Step 2 outlined in this article: Pay for business expenses with personal funds.
Also, you can use the Attachments feature to record those PDF's (purchases) for audit purposes.
You'll want run an Account QuickReport to review these entries. To do that, you can go to the Accounting menu again. Select the expense account you've created, and then click Run report.
You can count on me if you need more QuickBooks tips. I'll be here to lend a helping hand.
