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Level 3

pay for business expenses with personal funds, on qb desktop for mac…

hi, i’m trying to pay for business expenses with personal funds, but the functionality in this video doesn’t seem to be supported on my qb desktop for mac:

 

https://www.youtube.com/watch?time_continue=4&v=qZg9JPMuLUc&feature=emb_logo

 

so i’m trying to pull it off with a general journal entry (a screenshot of a test entry is attached)…

 

i like to gather and consolidate expenses paid with personal funds monthly, which would be expense deductions in assorted categories (i keep the separate receipts in another place outside of qb in case they’re ever needed for a tax audit)…

 

my questions:

 

1) is there a better place, other than the general journal, to do what i’m trying to do?

 

2) if my general journal entry in the attached screenshot seems okay, then is there a place in qb where i can find this $8 that’s owed to todd lerner (myself) and pay it to myself for deposit into my personal checking account outside of qb?

 

3 should i record the reimbursement check by paying it as a check or by recording it as an “expense”, but i don’t see that functionality anyway in my qb desktop mac (?)

 

i appreciate any help on this, i’m trying my best but i’m not an accountant :)

 

-todd

Solved
Small business owners often contribute to their business by purchasing things with their own funds. Let's go over how to record this in QuickBooks. We're goi...
Best answer September 22, 2020

Best Answers
QuickBooks Team

pay for business expenses with personal funds, on qb desktop for mac…

I appreciate the complete details you've shared, @Todd.

 

Mixing your personal and business funds and expenses isn't highly advisable. Let me share some information to help you accurately tracked your expense transactions.

 

To start with, the video tutorial you've use as a reference is for QuickBooks Online. You can create a journal entry to record the expenses that you cannot reimburse themselves in the short term. However, if you're paying the expenses immediately, you can write a check to reimburse the business expenditures paid for with personal funds. You can read through this article for more detailed information: How to Record Expenses Paid by the Owner’s Personal Funds.

 

On the other hand,here's how to write a check in QuickBooks Mac:

  1. Go to the Banking menu.
  2. Choose Write Checks.
  3. Click the New Check on the left panel.
  4. Enter the information for the check.
  5. Click Save.

You can read through this user's guide for more detailed instructions: QuickBooks Desktop Mac 2020 User’s Guide (Go to page 152).

 

Also, you can visit Intuit QuickBooks Lttle Square, an online magazine with videos, articles, and advice on how to get the most out of QuickBooks Mac.

 

Swing by here if you have other questions about tracking your expenses and reimbursements in QuickBooks. I'm always here to help.

View solution in original post

9 Comments
QuickBooks Team

pay for business expenses with personal funds, on qb desktop for mac…

I appreciate the complete details you've shared, @Todd.

 

Mixing your personal and business funds and expenses isn't highly advisable. Let me share some information to help you accurately tracked your expense transactions.

 

To start with, the video tutorial you've use as a reference is for QuickBooks Online. You can create a journal entry to record the expenses that you cannot reimburse themselves in the short term. However, if you're paying the expenses immediately, you can write a check to reimburse the business expenditures paid for with personal funds. You can read through this article for more detailed information: How to Record Expenses Paid by the Owner’s Personal Funds.

 

On the other hand,here's how to write a check in QuickBooks Mac:

  1. Go to the Banking menu.
  2. Choose Write Checks.
  3. Click the New Check on the left panel.
  4. Enter the information for the check.
  5. Click Save.

You can read through this user's guide for more detailed instructions: QuickBooks Desktop Mac 2020 User’s Guide (Go to page 152).

 

Also, you can visit Intuit QuickBooks Lttle Square, an online magazine with videos, articles, and advice on how to get the most out of QuickBooks Mac.

 

Swing by here if you have other questions about tracking your expenses and reimbursements in QuickBooks. I'm always here to help.

View solution in original post

Level 3

pay for business expenses with personal funds, on qb desktop for mac…

hi lamjuViel, thanks for your help! i’m a little lost and have more questions…

 

(first, thanks for your advice on not mixing bus and personal but i’ve been doing it this way for years and now i’m switching to qb from another program, and i think this way should work okay/best for my needs)

 

questions – i’ve attached a numbered screenshot:

 

again, i’m just testing qb with fake entries to prepare for my migration which will be on jan 1 of next year…

 

1) in this trial balance report, the $8 makes sense for owner’s equity since i used that account in my gen journal entry…

 

2) the gen journal entry correctly sends these line item amounts to my trial balance, so i can give those numbers to my accountant at the end of the year for tax expense deductions, so this seems like it’s working for me…

 

3) but the trial balance is now not in balance? is that because it represents the $8 of owner’s equity i’ve put into the business and so it should not be in balance? but isn’t the trial balance supposed to be balanced? if so, how can i balance it?

 

4) in my checking account, i tried to temporarily add $8 but this double entry somehow happened, is there a way i can delete this, i can’t figure out how to delete this?

 

5) i then did a deposit of $8 (temporarily to make balancing and testing things easier). but when i start using qb on jan 1, how do i enter a real “opening balance”… is that field only available when i first create the checking account chart of account? if so, should i de-activate this checking account chart of account and then make a new one to use starting on jan 1? and if so, do i put in my checking account balance as of that date then enter all still-active bank transactions?

 

6) i reimbursed myself for my personal business expenses (using the “owners equity” account), was that the right thing to do?

 

thank you for your help and input!

-todd

Moderator

pay for business expenses with personal funds, on qb desktop for mac…

Thanks for the details, Todd.

 

Yes. You're using the correct account. When reimbursing a business expense from a personal account, we can use either Partner's equity or Owner's equity account.

 

From there, you can reimburse the expense by writing a Check or an Expense transaction. You can follow the steps shared by my colleague on how to do it.

 

Once we have created an expense transaction, we don't need to make a deposit. This is the reason why you have duplicate entry. We can delete it to fix the trial balance.

 

On the other hand, we can enter an opening balance by going to the account and click Enter Opening Balance

 

You can check this article for more information: Record Expenses Paid by the Owner’s Personal Funds.

 

I'm just around if you still need help. Keep safe!

Level 3

pay for business expenses with personal funds, on qb desktop for mac…

hi Adrian_A, thanks for the input!

 

i still have some questions and issues…

 

for my previous post screenshot numbers, in relation to your answers…

 

4) i can’t seem to delete the deposit. when following your link instructions i see: “3 Find the Deposit Detail report. Then select the Run icon.” but i don’t see a “run icon” anywhere (i am on mac desktop if that’s why i don’t see this?). how can i delete deposits on mac desktop? do i need to do something in an “undeposited funds account”? and where can i find that account?

 

5) i only made this deposit so my checking account will be balanced at $0 after paying myself, since i haven’t yet indicated an opening balance. also, it seems like i can only enter an opening balance when i first make the bank chart of account, is this because i’m on mac desktop? anyway, i’ll remake this account on jan 1 (so i can enter an opening balance) since that’s when i’ll do my migration and make qb active for my company, right?

 

3) this trial balance of $8 was here even before i made the $8 deposit (i think) that $8 deposit only balanced my checking account in qb… what do i need to do to make my trial balance $0… or SHOULD it be $8 which indicates that $8 was put into the company by me as equity to pay for things?? or do i need to log this $8 somewhere else as well as an equity contribution or something??…

 

thank you for your help on this!

-todd

QuickBooks Team

pay for business expenses with personal funds, on qb desktop for mac…

Thanks for coming back to the Community, toddlerner.


I appreciate you for following the solution shared by my colleague and sharing the result.


For your fourth question, you should be able to see the Run icon on the Deposit Detail image. Click on the arrow pointing toward the right (attached screenshot). Alternatively, use the shortcut keys to open the report. Check out this article for detailed information and proceed directly to the QuickBooks for Mac section: Keyboard shortcuts in QuickBooks Desktop.run.png


Once you’re able to open the Deposit Detail Report, you can start deleting the deposit. I still suggest following the article shared by my peer. You’ll no longer have to go to the Undeposited Funds account if the amount is already deposited to the correct bank. Then, go to your chart of accounts to view the account.

 

If you didn’t enter transactions to the checking account, you can add the amount for the opening balance. Here’s how:

 

  1. Go to the Lists menu at the top to choose Chart of Accounts.
  2. Choose the bank you’re working on and press Control-click to select the Edit Account option.
  3. In the Edit Account window, tap the Opening Balance button to display the account’s register.
  4. Then, input the amount.

If there are already entries recorded, open the checking account, and look for the Opening Balance Equity. From there, type in the correct amount.

 

To help get acclimated about QBDT for Mac's features and processes, let me share this link containing our self-help articles: Get started. 


Let me know if you have any other concerns or questions. I’m here to answer them for you. Have a good one.

Level 3

pay for business expenses with personal funds, on qb desktop for mac…

hi Rasa-LilaM,

 

thanks for your reply, i think all is good now... my error was that i thought a trial balance should have "0"s in the two bottom columns but i think my assumption was wrong (i'm not an accountant)... a trial balance should just have matching numbers in the credit and debit column totals, right? (screenshot attached of how my trial balance is looking now).

 

so i think my system for doing a gen journal then paying my self back for personally paid business expenses seems correct for what i need to do.

 

thanks!

-todd

Content Leader

pay for business expenses with personal funds, on qb desktop for mac…

I'm glad to hear all is good now, toddlerner, and that Rasa-LilaM and other Community members were able to lend a hand. It does look like your trial balance is correct, but it's never a bad idea to double check with an accountant as well. 

 

If you don't have an accountant, you can locate one in your area by visiting the QuickBooks ProAdvisor site. ProAdvisors are certified accountants, specifically trained in the workflows of QuickBooks, so they're extra helpful.

 

As always, the Community is available to assist, so please don't hesitate to reach back out if you have any other questions. Take care!

Level 3

pay for business expenses with personal funds, on qb desktop for mac…

thank you MorganB and everyone else for your help!  -todd

Content Leader

pay for business expenses with personal funds, on qb desktop for mac…

You're very welcome!

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