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jhulsey
Level 1

How to record a cash payment to vendor (contractor) from personal funds

I am flipping my first house.  I paid a contractor from my personal funds.  I paid him in cash without depositing it into the business account.  I was not thinking about how I would put this into QB.  At a loss as to how to account for this when I didn't have any record of it in my bank account.   I have to send this contractor a 1099 Misc.  I entered an "other current liablility" as a shareholder loan.  Made a journal entry for the payment to the contractor.  However, the payment doesn't show up on his 1099 summary.  Any help would be appreciated.

Solved
Best answer January 29, 2019

Best Answers
qbteachmt
Level 15

How to record a cash payment to vendor (contractor) from personal funds

@Anonymous

Please Learn from the input here.

 

@jhulsey

 

You need to show you Spent Cash. That means you make a Bank type of account and name it Cash On Hand. Use it to Write Check for the vendor name as payee.

 

Now this Bank is running negative.

 

You will use Banking menu > Make Deposit to this bank. That can be Owner Equity, or if this is a Corporation, this is "from" Shareholder Loan as Liability.

 

Never use JE for vendors.

View solution in original post

4 Comments
Anonymous
Not applicable

How to record a cash payment to vendor (contractor) from personal funds

Hello, jhulsey.

 

Most probably the account used for the payment was not map to a 1099 box. You can follow the steps below to map the account in QuickBooks.

  1. Go to Vendors> Print/E-File 1099s.
  2. Select 1099 Wizard.
  3. Go to Step 3 of the wizard (Map Accounts)
  4. Click the drop down arrow next to Show 1099 accounts and click All accounts.
  5. Map the account to specific 1099 box.

Please visit us again if you need further assistance while working in QuickBooks.

qbteachmt
Level 15

How to record a cash payment to vendor (contractor) from personal funds

@Anonymous

Please Learn from the input here.

 

@jhulsey

 

You need to show you Spent Cash. That means you make a Bank type of account and name it Cash On Hand. Use it to Write Check for the vendor name as payee.

 

Now this Bank is running negative.

 

You will use Banking menu > Make Deposit to this bank. That can be Owner Equity, or if this is a Corporation, this is "from" Shareholder Loan as Liability.

 

Never use JE for vendors.

View solution in original post

jhulsey
Level 1

How to record a cash payment to vendor (contractor) from personal funds

Thank you!  This worked perfect.  

KhimG
QuickBooks Team

How to record a cash payment to vendor (contractor) from personal funds

Hello there, @jhulsey.

 

I'm glad the steps given above were able to help you with your concern.

 

If you need anything else, don't hesitate to leave a comment below. The Community is here to help.

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