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Level 1

Paying myself back the startup costs and recording it in QB Desktop

I have a LLC and I am using QB Desktop version.

I have recorded everything I spent to start up the business - separately in a note-pad with receipts.

I have made one transfer from my personal bank account to the business bank account when we first opened it, as the starting money in the account. Everything else was paid for before that from my personal account, like cost of supplies, equipment, phone bill, etc. 

So I added it all up to what my total cost to start the business was, including the deposit into the business bank account. 

 

Now, how do I show this on QB Desktop? I want to start paying myself back from the business account, but I'm not sure how to do this exactly, since most of it was not actually deposited into the business bank account in the first place.

 

Hopefully my question makes sense! 

Thank you!

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Level 15

Paying myself back the startup costs and recording it in QB Desktop

You would do it like this, assuming this is a single-member LLC:

Make a Bank type of account and name it Owner Funds.

 

Use Banking menu > Write Check, to enter your spending, whenever you pay by cash, personal check, personal debit card or personal credit card. Now this Bank account holds these details. It also is running negative.

 

So, you use Banking menu > Make Deposit to this Bank. Put no name in the deposit; this is "from" the Owner Equity account. Make a deposit at least at year end, or quarterly, or monthly, to bring this account to 0. This reflects your own spending as part of the value you invested in the business = your Equity position.

 

When you want to take funds, take them any time you decide there are enough funds to take funds. Banking menu > Write Check or use the Transfer data entry screen. This is From Business Bank and taken as Owner Draw, from Equity.

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