Hello,
I've been using QB for about 12 years or more for my husband's painting business. I have a scenario that just came up, and I'm clueless as to how to record the transaction.
I emailed our accountant, and his answer just left me confused. Can someone here help me / walk me through recording this with super-clear directions? Keep in mind, I'm not a trained bookkeeper ... I've just been inputting simple, straightforward information all these years.
My husband uses his credit card for business charges and personal charges. He typically pays the credit card bill with the business checking, and all personal charges are accounted for as "shareholder distributions."
Recently, the CC bill was over $3,000.00. Hubby took cash out of our personal savings account ($903.00), deposited it into the business checking account (to cover the personal charges), and paid the bill w/a check from business checking.
When I emailed him, the following is what my accountant said to do:
"You can just record the deposits into the business account of the personal fund as an offset to shareholder distributions. Just hit the same account, and it will act as a credit rather than a debit."
I especially don't understand that last part.
Thanks in advance for any help you can give