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Community Contributor *

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 10-15-2018

Accepted Solutions
ProAdvisor

It's an owners draw. It shouldn't matter.

It's an owners draw.

It shouldn't matter.

5 Comments
ProAdvisor

It's an owners draw. It shouldn't matter.

It's an owners draw.

It shouldn't matter.

Experienced Member

I don't see owners draw.. I just see owners investment, a...

I don't see owners draw.. I just see owners investment, and owners pay & personal expense...
Established Community Backer ***

You have to add it

You have to add it
Experienced Member

Super new to this... the account type should be equities,...

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

Owner Draw is an equity account but QuickBooks won't auto...

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