I use QB Desktop Pro (not online) I am a first time business owner (with my brother). We outsourced an app development, for which my brother and I paid from personal accounts and got reimbursed from company accounts. I am very new to accounting & quickbooks.
1. Should I setup a personal account on QB? 2. How do I record the bill payment from personal account? (Have a vendor invoice) 3. How do I record the reimbursement from business account to personal account?
Thankyou. I saw many related Q/As. But they were not directly related OR appeared to be for a seasoned accounting person. Your help is appreciated.
Second, you'll need to create a journal entry to track the business expense you paid with personal funds. As always, it would be best to consult an accountant on what accounts to use to ensure your books are accurate. Here's how:
Go to the Company menu, and then choose MakeGeneral Journal Entries.
On the first line, select the expense account for the purchase, and enter its amount in the Debit column.
On the second line, pickthe Owner's Equity account, and then enter the same purchase amount in the Credit column.
Hit Save and close.
Third, you can create a check to reimburse the payments from business to personal account. Here are the steps how:
From the Banking menu, select Write Checks.
Choose a Bank Account.
Go to the PAY TO THE ORDER OF section and then pick your name.
Tap the Expenses tab, and then choose the owner's equity account and then enter the amountto reimbursein the Amount field.
Click Save & Close.
Also, I'd recommend entering a memo in these transactions, so the other members of your business can easily identify them.
I was also seeking answers to the above questions about recording business expenses with personal funds. I have an additional question along the same lines. It has to do with the 2nd part of the conversation..being reimbursed or writing a check for the amount assigned to owner equity. What if the owner does not want to be reimbursed (primarily because there hasn't been enough income yet to fund a reimbursement) but only wants QB to reflect the expenses for tax purpose?