cancel
Showing results for 
Search instead for 
Did you mean: 
extremeautodetailingwny
Level 1

Paying for expenses with personal funds without reimbursing

The help article gives information on how to record the business expense paid with personal funds and how to reimburse by either check or recording as an expense. What if you are just starting and you don't want to reimburse? For example I captured a receipt using the receipt capture feature in the QB App. When reviewing the receipt I chose the correct category for the expense, but I'm not sure what to put in the Bank/Credit Account** category. I tried my Owner's Equity account because it's been paid for with personal cash. Then I get a "Something went wrong error. You need to select a different account". I don't want to select the business checking or business savings account because I did not use those to pay for this item. I then tried to create a journal posting, but the receipt wouldn't "match" to it. Please advice on how to take care of an item paid in cash that we are not going to be reimbursing because the business is brand new and haven't made income yet. Thank you for your help!

4 Comments 4
vpcontroller
Level 11

Paying for expenses with personal funds without reimbursing

@extremeautodetailingwny 

 

"put in the Bank/Credit Account** category. I tried my Owner's Equity account"

 

This's the right way to go. It should have worked. It workes on mine. You may want to try from the desktop computer. 

(From the left Dashboard > Banking tab > Receipts).

 

bank-credit-account_owner's-equity.PNG

john-pero
Community Champion

Paying for expenses with personal funds without reimbursing

This is where a fake Clearing bank type account comes in handy. Record the expenditures from Clearing. Then make a deposit to Clearing from Owner Equity Contribution. 

extremeautodetailingwny
Level 1

Paying for expenses with personal funds without reimbursing

What would be a good name to call this clearing account when I make it? Also once I do the Expense transaction then the Deposit transaction, am I able to get the receipt image for the transaction to “Match” to these transactions?

Candice C
QuickBooks Team

Paying for expenses with personal funds without reimbursing

Welcome back, @extremeautodetailingwny.

 

Yes, once you create an Expense transaction, you can add the receipt as an attachment. It's a very easy process just follow the steps below.

  1. Go to the Banking tab.
  2. Pick the Receipts section.
  3. Click on the For Review section.
  4. Under the "Action" column, press Create Expense if you haven't already or the drop-down arrow to choose Review to see the receipt and match it up with an Expense that is already created.

 

Learn more about the Receipts feature in QuickBooks Online by looking into this guide.

 

To properly get the best answer to what name you should give the clearing account, I recommend consulting with your accountant to be sure.

 

The Community is always here to have your back, so if you have any other questions, feel free to ask. Happy Friday!

Need to get in touch?

Contact us