I have an American Express credit card and use it for bills that the company cannot pay. It has a large balance and I decided to use my personal money to pay off the credit card. How do I record the payment?
Welcome to the Online Community. I’m here to ensure the credit card payment is properly recorded in your account.
When running a business, it’s important to keep track of the transactions. This will help you manage and control your finances.
In situations like this, you’ll need to create a journal entry to record the payment using your personal account. Let me provide you with the step by step process.
Click on the Plus (+) icon.
Select Journal Entry.
Enter the date, and the entry number.
On the first line, select the correct expense account for the purchase.
Enter the amount of the purchase in the Debit column, and select the customer’s name.
Next, go to the second line.
Under the Account column, enter Owner's equity or Partner equity.
In the Credit column, enter the amount of the purchase.
In the Memo field, add Reimbursable to help you identify the transaction later.
Once done, click on Save and close.
After creating the journal, you can either record the reimbursement via check or Expense. You'll find the detailed instructions by clicking on this link and going directly to the Record the reimbursement as section: How to pay for business expenses with personal funds.
That's it. The following steps will help get you moving today.
If you have addtional questions about the process, leave a comment below. I'll be happy to answer them for you.