Categorizing a mistaken card payment

Wild Eyed · ‎January 16, 2025

I'm trying to figure out how to categorize a credit card payment in my quick books. In December 2024 I mistakenly paid my personal credit card bill using my business bank account. I realized afterwards so I then transferred the exact same amount from my personal account into my business account to balance the charge. However now I don't know how to categorize each transaction. If put it as an uncategorized expense and then income, it balances but doesn't seem right to me. Especially as my end of year profit/loss report shows more expenses and income than is really the case. Thanks in advance.

FishingForAnswers · ‎January 16, 2025

@Wild Eyed The exact name would depend on which type of company you are, but it amounts to the same thing.

The payment made by the business would be some variety of Equity Draw.

The reimbursement to the business would be some variety of Equity Contribution.

Either way, it's just the owner or officer or what have you effectively taking equity out of the business and then putting equity back in.

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FishingForAnswers · ‎January 16, 2025

@Wild Eyed The exact name would depend on which type of company you are, but it amounts to the same thing.

The payment made by the business would be some variety of Equity Draw.

The reimbursement to the business would be some variety of Equity Contribution.

Either way, it's just the owner or officer or what have you effectively taking equity out of the business and then putting equity back in.

Wild Eyed · ‎January 17, 2025

Ok great. I just categorized them as Owner Draws and Owner Investment. That seems to work.

Thank you so much for your help.

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Categorizing a mistaken card payment