Shareholder Loan or Petty Cash?

BookBee · ‎April 18, 2021

I spent money using my personal account before I could open my business bank account. I now want to enter those receipts.. I think it would be easier to pay myself back as a Petty Cash but should I do this a different way through a Shareholder Loan? Can someone walk me through how to enter that?

What would be the benefit to doing it as a shareholder and not just paying back in Petty Cash?

Rose-A · ‎April 18, 2021

I'd be glad to share with you the steps in entering those receipts in QuickBooks Online, BookBee.

You can enter those receipts using journal entries in QuickBooks Online. However, using this method needs the assistance of an accounting professional for the accounts you need to use (Shareholder Loan or Petty Cash).

Also, they'll be able to help and guide on which account to debit and credit. Here's how:

Click + New in the left panel and choose Journal entry.
Fill out the fields to create your journal entry and enter the amounts.
Hit Save and close.

For the detailed steps and instructions, check out this article: Pay for business expenses with personal funds. This will provide you steps on how to reimburse the money.

Additionally, you can scan through this write-up: Mixing business and personal funds. It contains more details about how to manage your personal funds in QuickBooks Online.

Feel free to drop me a line if you have any other QuickBooks concerns. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

View solution in original post

Rose-A · ‎April 18, 2021

I'd be glad to share with you the steps in entering those receipts in QuickBooks Online, BookBee.

You can enter those receipts using journal entries in QuickBooks Online. However, using this method needs the assistance of an accounting professional for the accounts you need to use (Shareholder Loan or Petty Cash).

Also, they'll be able to help and guide on which account to debit and credit. Here's how:

Click + New in the left panel and choose Journal entry.
Fill out the fields to create your journal entry and enter the amounts.
Hit Save and close.

For the detailed steps and instructions, check out this article: Pay for business expenses with personal funds. This will provide you steps on how to reimburse the money.

Additionally, you can scan through this write-up: Mixing business and personal funds. It contains more details about how to manage your personal funds in QuickBooks Online.

Feel free to drop me a line if you have any other QuickBooks concerns. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

BookBee · ‎April 18, 2021

Thanks so much!

ChristaLancial1981 · ‎February 08, 2022

I need to get a personal loan to fix my car and pay some bills and I did my taxes to be done by TurboTax or are you guys the ones that take it out of the tax understand

SarahannC · ‎February 08, 2022

Hello there, @ChristaLancial1981. Thanks for joining here.

In QuickBooks Online, you'll have to set up a loan to record the data into the system. Please follow the information below.

Set up a liability account to record what you owe: Set up and add accounts to your chart of accounts.
Record the money you got from the loan: Create a journal entry.
Record a loan repayment: Create and record checks.

And, yes, you can prepare and e-file your tax return using TurboTax. In QuickBooks Online Payroll, tax filings depend on if you chose to have us pay and file your federal and state payroll taxes for you or if you opted to pay and file them yourself.

Please refer to the articles below, as I want to ensure you'll get the complete details about filing your forms and taxes in the system.

I'll be around and the QuickBooks Team to assist you if you need one. Take care and stay safe, ChristaLancial1981.

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Shareholder Loan or Petty Cash?