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kimmarie122
Level 1

How do i categorize a personal purchase on a business credit card?

I understand i should not mix personal and business accounts. I plan on rectifying this in the future. I am a sole proprietor. I occasionally make personal purchases with the business credit card. I pay the business credit card with the business checking account. How do i categorize the personal purchase? Should i exclude the personal transaction? I just set up an owners equity draw account. Do i add it to owners draw account or transfer it to owners draw account? Is there a difference between adding it or transferring it? 


Solved
Best answer October 15, 2018

Best Answers
Raywhite28
Level 7

How do i categorize a personal purchase on a business credit card?

It's an owners draw.

It shouldn't matter.

View solution in original post

8 Comments 8
Raywhite28
Level 7

How do i categorize a personal purchase on a business credit card?

It's an owners draw.

It shouldn't matter.

View solution in original post

LKramer82
Level 1

How do i categorize a personal purchase on a business credit card?

I don't see owners draw.. I just see owners investment, and owners pay & personal expense...
john-pero
Community Champion

How do i categorize a personal purchase on a business credit card?

You have to add it
LKramer82
Level 1

How do i categorize a personal purchase on a business credit card?

Super new to this... the account type should be equities, correct? I don't see owners draw under there.. Closest thing was personal expense.
john-pero
Community Champion

How do i categorize a personal purchase on a business credit card?

Owner Draw is an equity account but QuickBooks won't auto create it. Add it new. Personal Expense might be set up as equity nut should not have expense in its name as it is not an expense for the business.

By any chance are you using Self-employed, not a full QBO? It is the only QB product where you cannot edit your Chart of accounts
Natalie01
Level 1

How do i categorize a personal purchase on a business credit card?

Can you use owner's distribution?

Miguel Alva
Level 1

How do i categorize a personal purchase on a business credit card?

Where you able to figure this out? 

I just upgraded to QB online from self employed.  I'm also having a hard time categorizing a personal expense on a business cc and paying the cc from a business checking account. 

Mich_S
QuickBooks Team

How do i categorize a personal purchase on a business credit card?

We thank you for choosing QuickBooks, @Miguel Alva.

 

Allow me to help you categorize a transaction in your account.

 

You should record in QuickBooks whenever you use a business account to pay for a personal expense. Then you can reimburse the company.

 

Here's how you can record a personal expense:

 

  1. Select + New.
  2. Choose Check or Expense.
  3. Select a Payee from the drop-down ▼.
  4. Select the Account you used to make the purchase.
  5. Select the tax category that fits your need.
  6. Enter the Amount.
  7. Select Save and close or Save and new.

Please review this article for the detailed steps: Pay for personal expenses from a business credit card or bank account.

 

Just leave a comment if you have further questions. Have a nice day!

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