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LLC Owner Paid Expenses from Personal Account - Lump Sum Reimbursement

Hello!

 

I created a new LLC and am the sole owner/member. I had several expenses up-front which I paid using my personal checking account before the business account was up-and-running (and before I had a business AMEX). Now, I would like to "reimburse" myself and make all those purchases just be an "owner's investment" instead of actually sending cash back to myself from the business account.

 

Can I do one lump-sum transaction instead of separate "reimbursement" transactions for each one? If so, how is the best way to do this?

 

Thank you!

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QuickBooks Team

LLC Owner Paid Expenses from Personal Account - Lump Sum Reimbursement

Welcome to the Community, @mpierce486. I'm here to guide you on creating a journal entry to record business expenses you made with personal funds. 

 

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

 

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

 

Then, reimburse the money to your personal account by either creating a check or an expense. Here's how: 

 

  1. Go back to the + New menu, 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. 
  5. Click Save and close.

 

 

You'll also want to check out this article for more details: Pay for business expenses with personal funds.

 

For future reference, read through this article: Transfer funds between accounts. It helps you learn about how to use the Transfer feature to record funds transfer transactions in QuickBooks Online. 

 

Visit us again here in the Community if you have additional questions, @mpierce486. I'd be delighted to answer your next post. 

 

 

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