How to log bank transfer to personal account?

FirstTakeAerial · ‎October 04, 2018

I made purchases with my personal credit card and then transferred money from my business account to my personal account in order to pay for the expenses.

How does this need to be logged? Should it go to the category "Owners Pay & Personal Expenses"? It won't let me create a new category and choose an expense which is what I would think it would need to go to.

Thank you!

lynda · ‎October 04, 2018

@FirstTakeAerial: If you are downloading this from the bank feed, click the "add" button and you will be able to add it instead of making it a transfer.

Or, just click +check and add it in and match it.

Now, I am sure you get great rewards with your personal card, however, I will caution you on doing this over and over again. I have worked with clients that combine personal and business accounts and it is never a good practice. Maybe see if you can get a great business credit card and keep it separate. If you are ever audited, you will be so glad you did.

Lynda . :cathappy:

View solution in original post

lynda · ‎October 04, 2018

Hello @FirstTakeAerial:

Enter the bank transfer as a check. Make it out to you. Expense line out what you purchased.

For example:

Payee: Lynda Artesani Amount 120.00

Expense: Office Supplies 75.00

Expense: Repairs and maint. 45.00

in the memo line: Reimbursement check for purchases made with personal checking. Then I would attach the slips for what you purchased.

Thank you for being part of the QB Community!

Lynda

Anonymous · ‎October 04, 2018

@FirstTakeAerial,

Good question. Is this just a transfer from account to account, or are you trying to account for business expenses paid for with personal money (this is usually known as Owner's Contribution)? Also, is this a one-time transaction, or do you use your personal account to pay for business expenses on a fairly regular basis?

@lynda, is this a case for using the Owner's Draw account?

FirstTakeAerial · ‎October 04, 2018

There is no option to enter the transaction as a check. I just have:

Bank

Other Current Assets

Other Current Liabilities

Equity

(There are other sub categories, but those are the only 4 main ones)

FirstTakeAerial · ‎October 04, 2018

Both my accounts are with Chase. I just did a transfer of money from my business checking to my personal checking. I am accounting for business expenses paid with personal money.

Right now it is a one time transaction, but it may happen more frequently until I get a business credit card with rewards. I use my personal now because I get good reward points.

Also I would like to transfer money to my personal account to pay myself for all the business startup costs that I had prior to getting Quickbooks. Can I do this the same way?

Thank you for taking the time to help!

lynda · ‎October 04, 2018

@FirstTakeAerial: If you are downloading this from the bank feed, click the "add" button and you will be able to add it instead of making it a transfer.

Or, just click +check and add it in and match it.

Now, I am sure you get great rewards with your personal card, however, I will caution you on doing this over and over again. I have worked with clients that combine personal and business accounts and it is never a good practice. Maybe see if you can get a great business credit card and keep it separate. If you are ever audited, you will be so glad you did.

Lynda . :cathappy:

FirstTakeAerial · ‎October 04, 2018

Thanks Lynda you've been a big help.

Do you think I'm ok to do the same thing to pay myself back for the original startup costs before I had the business account and quickbooks?

lynda · ‎October 04, 2018

Yes @FirstTakeAerial. You can pay yourself back for the startup costs.

Lynda

CharlieBreakwell · ‎April 02, 2020

If it’s a transfer from business to personnel account to pay personnel bills etc what is the preferred category? I’m a Ltd company.

Thanks in advance,

Charlie

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How to log bank transfer to personal account?