Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
My boss used our company card to make a purchase he is going to pay for out of his own pocket. Is it possible for us to have him pay the credit card directly and not enter either the charge or the payment in QBO? Or will that mess up our reconciliation? If I can't do that, should I record the expense to a miscellaneous expense category, then have him pay the company and record that as a credit to the same expense category? Are there any other options to make this less complicated?
Solved! Go to Solution.
"Is it possible for us to have him pay the credit card directly and not enter either the charge or the payment in QBO? Or will that mess up our reconciliation?"
Yes, and IMO it's the preferred way to do it - just leave it out of the company books completely. Reduce the ending cc balance on the next reconciliation by the amount of the personal charges and it will reconcile fine.
@DBarrow2 No need to make up an expense account.
The exact name of the account will vary based on the type of company you are (Sole Proprietor, Partnership, S-Corp, etc), but it comes down to the same concept.
When an owner or such like takes money out of their business, whether by drawing cash or making a personal purchase, it should reduce their Equity in the business.
Likewise, when an owner or such like puts money into the business, whether by depositing cash or reimbursing a personal purchase they made, it should increase their Equity in the business.
So, use an Equity account (Owner's Draw, Partner 1 Draw, etc) for the account on the credit card charge, and use the same to recognize the credit card payment.
"Is it possible for us to have him pay the credit card directly and not enter either the charge or the payment in QBO? Or will that mess up our reconciliation?"
Yes, and IMO it's the preferred way to do it - just leave it out of the company books completely. Reduce the ending cc balance on the next reconciliation by the amount of the personal charges and it will reconcile fine.
That sounds great. Thank you!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here