Entering a credit card payment paid by personal account

Hi sw1222,

You can record it by creating an expense transaction.

You can create either Check or Expense transaction to record the expense made using your aqpersonal account for the business.

Before doing any of the steps, I'd suggest reaching out to your accountant so you'll be guided on the best account to use.

To start with, record the business expense you paid for with personal funds:

1. From the + New button, select Journal Entry.
2. On the first line, select the expense account for the purchase.
3. Enter the purchase amount in the Debits column.
4. On the second line, select Partner's equity or Owner's equity.
5. Enter the same purchase amount in the Credits column.
6. Click Save and close.

Then, create either a Check or Expense transaction. Here's how:

1. From the + New button, select Check or Expense.
2. Select a bank account to use to reimburse the personal funds.
3. In the Category column, select Partner's equity or Owner's equity.
4. Enter the amount of the reimbursement.
5. Select Save and close.

I've also added this link for more resources in managing your expenses: QuickBooks Community.

 You can always get back or pin this thread if you have other concerns handling expenses. 

Thanks for your response.

The transaction is in the system already by automatic bank feed so I don't need to manually create the expense.

However, in order to approve the transaction and have it added to the system, I have to add how the cc was paid.  The pull down menu obviously only shows the bank accounts which I have in my system already.  Since this was paid by an external account, it is not on the pull down menu. So what do I do?  

I appreciate the additional details provided about your concern about handling credit card payment made using personal account,@sw1222.

I'm here to share my insights and walk you through the steps to accurately record the payment.

You can enter the payment by transferring the data if your credit card is linked to the bank account you use to pay your credit card expense.

Note: Adding the external bank account is needed for recording purposes. It's recommended to get in touch with your accountant for the accounts you'll choose.

To transfer the payment:

1. Open the Bookkeeping menu, click on Transactions, and then choose Expenses.
2. Pick the account you need to transfer the payment from.
3. Pick the transaction, then click on the Pay down credit card radio button.
4. Click on the Transfer account ▼ drop-down to choose the account you want to send the transaction to.
5. Once done, click on Confirm.

Aside from that, you can also transfer the payment using the Record as transfer option. Here's how:

1. Open the Bookkeeping menu, click on Transactions, and then choose Expenses.
2. Pick the account you need to transfer the payment from.
3. Pick the transaction, then click on the Record as transfer radio button.
4. Click on the Transfer account ▼ drop-down to choose the account you want to send the transaction to.
5. Once done, click on Confirm.

After that, you'll need to match it with the new account.

1. Click on the Recognized tab.
2. Find the transaction.
3. Navigate to the Action column, and click on Match.

For more information about other ways to keep track of credit card payments, read this module: Record your payments to credit cards.

Once you're ready to match your balances and credit card balances, feel free to also review this guide: Reconcile an account in QuickBooks Online.

Fill me in for updates or additional queries about handling credit card transactions or QuickBooks. It's my pleasure to be of help always. Stay safe!

I'm not sure that that really gets at the heart of the question. 

In my case, I paid off a chunk of my business credit card expenses by transferring to an external, not connected, personal credit card. Therefore, the payment account is not connected because it is a personal account and because it's a personal account I don't really want to connect it to quickbooks. Is there any other way to categorize a balance transfer to an external account. And potentially have a "pay down" account for subsequent payments?

Yes, CRISTINAJ. We can categorize the balance transfers under a specific category by setting up an asset account from the chart of accounts and creating a journal entry to record this in QuickBooks Online (QBO).

To begin with, we need to create an equity or liability account to represent the personal credit card. However, it's best to seek advice from an accountant for further guidance on selecting the appropriate detail type.

After that, we can proceed to record the business expenses that were paid with a personal credit card with a journal entry.  Here's how:

1. Open + New and select Journal Entry.

3. On the first line, choose the expense account for the purchase and enter the purchase amount in the Debits column.

4. On the second line, select the account you created earlier..

5. Enter the same amount in the Credits column.

6. Hit Save and close.

Once done creating a journal entry, we can make a check or an expense to reimburse the funds.  Follow these steps for the best fit:

When creating checks, please know that bank accounts are used to reimburse personal funds:

1. Select + New and then Check.

2. Choose a Bank account to reimburse the personal funds.

3. In the Category column, select the account you've created earlier.

4. Enter the amount to reimburse.

5. When finished, hit Save and close.

While expense uses bank accounts and credit cards when reimbursing personal funds:

1. Select + New and then Expense.

2. Choose a Bank account to reimburse the personal funds.

3. In the Category column, select the account you've created earlier.

4. Enter the amount of the reimbursement.

5. Hit Save and close.

To learn more about this, you can check this article for more information: Pay for business expenses with personal funds.

Additionally, you can visit this helpful article on how to reconcile your account in QuickBooks: Reconcile an account in QuickBooks Online.

Furthermore, you can connect with our Live Expert Assisted team for personalized assistance with reconciliation. They can offer customized advice to ensure accurate bookkeeping and provide valuable tips to help you excel as a beginner. This expert guidance will empower you to manage your finances confidently and accurately.

QuickBooks offers the versatility to ensure your transactions are recorded with confidence. Categorizing these transactions is critical for maintaining accurate financial records and streamlined bookkeeping. I'm here if you need further assistance with this matter or any additional questions you might have. We are dedicated to assisting you at every step of the way.