Money transferred

Hi there, agubax.

It's always a good idea to avoid mixing business and personal expenses. However, sometimes we find ourselves in situations where we have to use our personal accounts to pay for business expenses. In such cases, you can create a Journal entry to record the business expense you paid with personal funds. 

I'll be happy to guide you through the process:

1. In the left menu, click the + New icon.
2. Choose Journal entry.
3. On the first line, select 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. Select Save and close.

For more information on handling business expenses paid with personal funds, you can check out this article: Pay for business expenses with personal funds. It also includes information on what to do when you decide to reimburse the money.

Moreover, it might be helpful to contact your accountant for more information on recording this transaction.

If you plan to pay personal expenses with a company account in the future, you might want to read this article: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

Please leave a message if there's anything else you need to record your transactions. We're always here to lend a hand. Have a great day!

Thanks for your response ! 

What I am doing so far is as follows:

1. I created a bank account (cash on hand) with my employee's name in order to have a record of how much money I am giving him, and what he spends it on. Also to know if I owe him money, or he has to pay me back.

2. When I send him money from my personal account to his personal account through Zelle, I register it as a bank deposit to that account that I created. Let's say for example I send him $100.00 to buy supplies.

3. Then in his bank account I make the journal entry to record that $100.00 expense by putting "supplies" and the amount in debit in the first row, and in the second row, the name of his bank account I created and the amount in credit.

I know it's a longer process, but it lets me know how much money I gave you and what I spent it on. Is it correct to do it this way?

In this way, his account remains at $0.00.

Hey agubax,

Thanks for reconnecting! For that situation, as my colleague mentioned above, it would be best to work with your accountant to see if that process is the best practice for your business. If you don't have an accountant, no worries! We have a ProAdvisor service where you can connect with experts within your area. Many even offer a free consultation! Here's how it's used: 

1. Go to this Find my Accountant link.
2.  In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
3.  Select Search.
4. Browse through the results and find one that works best for your business. You can click on each ProAdvisor profile to learn more about them. 

Let me know how that works out for you! If you have any other questions, you know where to find us for help! See you later.