Getting started: Due to Shareholder

basrijn · ‎November 20, 2019

Hi all,

Just starting on my freelance journey and Picked QBO as my accounting software. I have an accountant, but was hoping to do the bookkeeping myself.

Currently in the process of incorporating (Canada) and have some expenses I paid for (on my private CC).

I created an expense entry, but need to pick the correct "Payment account entry".

My accountant says to use "Due to Shareholder - Long Term Liability acct"

Using the help function I added a "Type = Long term liabilities, Detail = Shareholder Notes Payable" to the Chart of Accounts.

But that does not give me an Account to use in the expense form (needs to be an asset acct?)

What is the correct way to enter this?

Kind regards,

Bas

Rustler · ‎November 21, 2019

on the expense form

line one: the expense account and amount for what you spent from personal funds or personal CC

line two: the due to liability account and the same amount as a negative number

save the zero dollar transaction

View solution in original post

Rustler · ‎November 21, 2019

on the expense form

line one: the expense account and amount for what you spent from personal funds or personal CC

line two: the due to liability account and the same amount as a negative number

save the zero dollar transaction

Olao · ‎April 30, 2021

What payment account will be selected for this under the expense form?

Thank you

Lexi P · ‎June 03, 2021

I have the same question! I understand how to create the Due to Shareholders account and what to put in lines 1 and 2 of the expense, but I do not understand what Payment Account to select.

Please help!

Cram · ‎June 26, 2021

If you want to use the 'Due to Shareholder' account on the expense form, set it up in the Chart of Accounts as a Credit Card. This way it will be one of the options on the drop down menu under "Payment Account"

KeepItBalancedBookkeeping · ‎January 05, 2022

If it's a zero-dollar transaction (because you'll be putting two lines to offset each other) it doesn't matter what the payment account is. It would appear on any account until you actually reimburse yourself. At that time you'd make a payment to yourself using Due To Shareholder as the expense account which will pull the funds from that account.

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Getting started: Due to Shareholder