Used Personal Credit Card for a business expense. Business paid the personal CC payment.

Hello there, @Sandy226.

Thank you for reaching out to the Community. I can help you record a business expense paid by personal credit card.

First, you need to record a business expense that was paid for by your personal funds:

1. Click the Plus (+) icon.
2. Choose Journal Entry.
3. On the first line, select the expense account, debit amount, and the customer name (optional).
4. On the second line, select the Owner's equity or Partner equity, and credit amount.
5. In the Memo field, add Reimbursement to help you identify the transaction later.
6. Select Save.

Next, you can record the reimbursement as a check or an expense transaction. For detailed instruction, please refer to this article: How to pay for business expenses with personal funds.

That should do it. I'm still here to help you more. Just mention my name or add a comment below. Wishing you all the best!

Thanks for the quick reply!  It appears these steps would be used for reimbursement when I've paid off the charge with my personal funds but in this case I didn't use my personal funds to make the payment to the CC, I used my business account so wouldn't the steps be different?

Thanks for explaining what you're trying to accomplish, @Sandy226.

Allow me to join this conversation and provide more information about recording an expense using your business account. 

When you pay expenses using business accounts or funds, you must first record the personal expense using the company's account and then reimburse the company afterwards.

Let me guide you how:

1. Select the Plus icon (+) on the Toolbar.
2. Under Vendors, select either Check or Expense.
3. Select the Payee from the drop-down list.
4. Specify the Bank Account, Cash Account, or Credit Card with which the purchase was made.
5. In the  Account details section, specify Owner's Equity or Partner's Equity in the Account column.
6. Enter the Amount of the purchase.
7. Select Save and close or Save and new.

Please check out the screenshots attached to guide you through the steps:

Once you record the expense, you must reimburse the company for the amount of the purchase.

To do that:

1. Select the Plus icon (+) on the Toolbar.
2. Under Other select Bank Deposit.
3. Specify the Account to which to add the reimbursement, and the Date.
4. In the Add funds to this deposit section, enter Partner's Equity or Owner's Equity in the Account column.
5. Specify the Amount of the reimbursement.
6. Select Save and close or Save and new.

Please see screenshots below:

With these steps, you'll be able to record your expense in QuickBooks Online.

Be sure to let me know how else I can empower you to make QuickBooks work the way your business needs. Thanks for coming to the Community, wishing you continued success.

Hi BettyJaneB, 

Let me clarify further - I didn't pay for a personal expense, it was a business expense where I accidentally used my personal credit card to make the purchase.  I didn't want to pay off that charge on my personal credit card with my personal funds.  So I instead made a payment from my business checking account directly to my personal credit card for the business expense.  I don't know how to enter that.  Unless I'm thoroughly confused, I don't see that I would enter an "Owner's Contribution" because I didn't contribute/use any personal funds, just my personal credit card for the purchase.  

Re: Used Business Credit Card for a personal expense and then gave funds from personal funds to pay the company back. How is this recorded in QBonline? I am trying to convince my client to segregate the cards but...

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@Sandy226 wrote:

 

 

 

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Hello Sandy226.  Did you ever find a solution to your issue?  I thought you explained it very well! I was disappointed that the responses you received on this forum did not answer the unique situation.  I have a client who did the same exact thing and I can not figure out how to record it.  If you were able to figure out a method I would be so grateful if you could share it.

Thank you!

 Ana 
[email address removed]

Hi there, @AnaG2020.

I'm here to share information about where to record the transactions you made in QuickBooks Online.

When you reimburse a personal expense, you can record it as a check or an expense. Here's how:

1. Click the + New button in the left menu.
2. Select Check.
3. Choose a bank account to use to reimburse the personal funds.
4. In the category column, select partner's equity or owner's equity.
5. Enter the amount to reimburse.
6. Hit  Save and close or Save and new.

For more information about this process, you can check out this article: Pay for business expenses with personal funds.

I've also shared these articles for future reference:

• Mixing business and personal funds
• Reimburse an employee

Tag my name if you need further assistance. I'll be around to help. Take good care!

Did you ever get the answer to this? I am in the same situation. 

Thanks for joining  us here, jscott1202.

It looks like all related information about properly recording business transactions using a personal account have been shared in this thread.

You can follow the steps that are provided in the earlier responses on how you can do it in your account. Let me also share these articles with you so you can get more details how to properly record these types of transactions in QBO: 

• Pay for business expenses with personal funds
• Mixing business and personal funds

Visit us again in the Community if you need more help when recording or tracking transactions. 

HoneyLynn_G- I have a similar question:  I used my personal credit card for a business expense and then my SBA Loan bank made a payment directly to my personal card to pay off the exact amount of the transaction.  How can I go about recording that in QB? 

While I have you can you explain the difference of recording a journal entry vs recording a normal expense.  I understand how to do both but not fully understanding when to use one vs the other. 

Thanks

Thanks for joining this conversation, @todd048.

To answer your question, you will use Journal Entry to enter the business expense paid with a personal credit card. Then, depending on how you want to reimburse the amount, you can use either the Check or Expense option in QuickBooks Online (QBO) to record the reimbursement.

To learn more about the process, consider checking out this article: Pay for business expenses with personal funds.

Please leave a comment in this thread if you have any other questions or concerns, and I'll get back to you as soon as possible. I'm always here to answer them. Have a good one!

Is this the correct answer? I was using a personal credit card for my business expenses ONLY (no personal purchases) and was making payments with my business checking account. I now know this is not good practice. How should I log my expenses and credit card payments for taxes?

Thanks for chiming in on this thread, rhgdiesel.

As for recording the payments for your business expenses using the personal credit card, the steps shared above is the correct answer. If you're unsure about the process, It'd be best to consult your accountant for advice. This is to ensure your reports are accurate at the end of the year.

For more information, you can read this article: Mixing business and personal funds.

I'd also like to share this link to help with your year end task: Year-end guide for QuickBooks Online.

You're always welcome to post a reply on this thread if you have more question or need help with other task in your account. Me and my colleagues are here to help. Take care always.

Thank you - there are multiple responses though on this thread though. Is the one marked as ‘solved’ the correct one? I am curious if I need to do anything with owners contribution or just leave the expenses and credit cards payments as is. Thank you

Good morning, @rhgdiesel. 

Thanks for reaching back out again to ensure you got the right answer. I'll point you in the right direction of the steps that will help you out. 

What my colleague FristzF said would work for you and your business. However, we do recommend that you consult with your accountant to be sure on this. They'll be able to give you the best accounting advice for your business. 

I'm only a post away if you have any other questions. Have a wonderful day!