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Level 2

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

My business is a single member LLC and I am new to QB.  I've searched topics plus QandA and am not finding anything along the lines of my issue. 

 

I accidentally used my personal credit card to make a business purchase.  Rather than use my personal funds to pay the purchase charge on my personal credit card, I made the payment from my business checking account.  How do I record this in QBO Simple Start?

Solved
Best answer February 20, 2019

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QuickBooks Team

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

I appreciate the details that you've given, @Sandy226.

 

You'll need to record this transaction as a regular expense on your QuickBooks Online. This is because you get the amount originally from your business checking account to pay the business expense. The process of transferring the funds from your business account to your personal funds won't vary in this case.

 

To do that:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Vendors, select Expense.
  3. In the Payee field, specify a vendor. You can specify the name of a person or a business.
  4. Select the Bank/Credit account to which to credit this expense.
  5. Enter the date of purchase in the Expense/Payment date field and specify the Payment method for the expense.
  6. Specify the Accounts to use for the transaction, and optionally enter a description of the expense.
  7. Enter the Amount of the purchase and any Tax paid. You can enter a calculation.
  8. Select Save and close or Save and new.

For more insights about creating an expense, please check out this article: How to enter, edit, or delete expenses.

 

That should do it.

 

Please let me know if there's anything else you need. I'll be around yo help you out. Have a great day!

View solution in original post

12 Comments
Highlighted
QuickBooks Team

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!

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Level 2

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

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?

Highlighted
QuickBooks Team

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

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 AccountCash 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:

Picture1.png Picture2.png

 

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:

Picture3.png Picture4.png

 

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.

Highlighted
Level 2

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

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.  

 

 

Highlighted
QuickBooks Team

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

I appreciate the details that you've given, @Sandy226.

 

You'll need to record this transaction as a regular expense on your QuickBooks Online. This is because you get the amount originally from your business checking account to pay the business expense. The process of transferring the funds from your business account to your personal funds won't vary in this case.

 

To do that:

  1. Select the Plus icon (+) on the Toolbar.
  2. Under Vendors, select Expense.
  3. In the Payee field, specify a vendor. You can specify the name of a person or a business.
  4. Select the Bank/Credit account to which to credit this expense.
  5. Enter the date of purchase in the Expense/Payment date field and specify the Payment method for the expense.
  6. Specify the Accounts to use for the transaction, and optionally enter a description of the expense.
  7. Enter the Amount of the purchase and any Tax paid. You can enter a calculation.
  8. Select Save and close or Save and new.

For more insights about creating an expense, please check out this article: How to enter, edit, or delete expenses.

 

That should do it.

 

Please let me know if there's anything else you need. I'll be around yo help you out. Have a great day!

View solution in original post

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Level 1

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

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...


@Sandy226 wrote:

 

 

 


 

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Level 1

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

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]

Highlighted
QuickBooks Team

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

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:

 

 

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


 

Highlighted
Level 1

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

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

Highlighted
QuickBooks Team

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

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: 

 

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

Highlighted
Level 1

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

Highlighted
Moderator

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

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!

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