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Connect with and learn from others in the QuickBooks Community.
Join nowHello,
My wife and I are starting a cosmetology school when bldg renovations are finished around March 2022. We currently have expenses dating back as far as July 2021. How should we record those expense in Quickbooks without having actually having opened for business as of yet?
I can show you how to record your expenses, KingDeuces.
Let's create a journal entry to record the expenses you've paid for the start-up costs out of your own personal account. you'll have to set up an expense account for the costs. I'd suggest consulting your accountant to determine the appropriate types of accounts.
You can also check out this article that will help you manage your business and personal accounts: Pay for business expenses with personal funds.
Should you have anything else you'd like to go over, feel free to reach out to us again. I'm always here to assist you further.
Thanks for your response Catherine. We have been paying all of the expenses thru our business account. We also know which expense accounts we need (Been using QB since 1997 for Beauty Salon). However, I am just not sure about how to handle entering the pre start-up expenses since we are at the end of the year, but won't be open until March.
Hello there, @KingDeuces.
In QuickBooks Online (QBO), we can enter the start-up cost by creating a journal entry. Debit your start-up expense account to increase the total. Credit the asset account you remove the money from. It's also important to document your start-up costs well.
Here's how:
1. Go to the +New button.
2. Under Other, select Journal entry.
3. Choose the account, then enter the debit and credit.
4. Hit Save and close.
I'd also recommend seeking assistance from your account to help you choose the right account.
Check out these links to help you track your money and pay business expenses in QBO:
• Track personal money or investments in your business
• Pay for business expenses with personal funds
• Record paying back an investment
I've added this reference for a compilation of articles you can use to get a better view of your business's financial status: Financial Report for QuickBooks Online.
If you have other questions or concerns, please let me know. I'm always here to assist you every step of the way. Take care and stay safe.
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