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keldo
Level 1

How do I categorize receipts for items that I paid from my personal account?

I paid some business expenses with a personal credit card before I opened my business checking account. I uploaded the receipts to QB, but now I'm having difficulty categorizing them. I thought the credit account would be "owner's investment" since I paid for it personally, but I keep getting an error message. What is the proper way to go about this?
2 Comments 2
Jovychris_A
QuickBooks Team

How do I categorize receipts for items that I paid from my personal account?

Thanks for posting to the Community, @keldo.

 

Let me walk you through on how to record business expenses with a personal account.

 

You'll have to record the expense using a Journal Entry you paid for with personal funds. Also, you can consult your accountant to help you account for it.

 

Here's how:

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

 

Since you're using receipts, you can record the reimbursement as an expense.

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

 

This way, you'll be able to categorize the items seamlessly.

 

For more details in recording business expenses using a personal credit card, you can refer to this article: Pay for business expenses with personal funds.

 

Additionally, here's an article as your source in categorizing banking transactions: Categorize and match online bank transactions in QuickBooks Online.

 

Please feel free to place a comment here if you need further assistance. I'll be around to help. Have a good one!

Clark Russo
Level 1

How do I categorize receipts for items that I paid from my personal account?

I'm having the same issue. I uploaded the receipt but after categorizing it as 'Owner's Investment' the only option I have is create an expense and I can't create an expense under 'Owner's Investment'. Can I create a JE straight from the 'categorizing receipts' step? The owner is not getting reimbursed.

So far, the receipts I categorized under 'Owner's Investment' Are not showing under that account. It's actually on the 'Receipts for Review'.

Please help!

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