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Will1901
Level 2

How to record owner reimbursement with recurring bank transfers?

Hello,

I wish to pay myself back for startup expense I incurred when starting my business. I wish to setup, through my bank, monthly payments from my business checking account to my personal checking account. 

How would I record this in Quickbooks? My business checking account is linked. I have the following accounts:

Owner's equity

>Owner's investment - where I log my movement of monies from personal checking to business checking

>Owner's startup investment - where I logged my startup expense purchased using personal cards

>Owner's draw 

Do these accounts make sense? 

Thank you
Will

4 Comments 4
Angelyn_T
QuickBooks Team

How to record owner reimbursement with recurring bank transfers?

Hello there, @Will1901.


I'm happy to guide you today on how you can record these transactions in QuickBooks Online.

 

Before recording the investment, you need to set up an equity account from the Chart of Accounts. The next step is to record the investment. Since your account is linked to QuickBooks, you don’t need to record the investment. You just have to categorize the transaction associated with your deposits. However, if you don't automatically import your bank transactions, you can record a deposit into your equity account instead.

 

Here's how:

 

  1. Select Bank Deposit from the New (+) icon.
  2. From the Account drop-down menu, choose the bank account you're depositing the money into.
  3. Enter the Date you deposited the money.
  4. In the Add funds to this deposit section, enter the name of the investor in the Received from field.
  5. Choose the appropriate equity account from the drop-down list in the Account field.
  6. Specify a Payment method.
  7. Enter the investment amount in the Amount field.
  8. Tap Save and close.

By the time you need to pay back the funds from the investment, you can follow the instructions provided from this link as your guide on how to record it.

 

These articles also share information about recording investments and setting up/paying an owner's draw, you can read the details from here during your free time additional references:

 

Post again if you have any other questions. I'm a few clicks away to help. Have a good day!

Will1901
Level 2

How to record owner reimbursement with recurring bank transfers?

I'm not asking how to record an investment. I am asking how to record monthly reimbursements.

How do I record the transfer of funds from my business to my personal checking?

Will1901
Level 2

How to record owner reimbursement with recurring bank transfers?

Sorry, I see you included a link with how to record the reimbursement. However I want to use a transfer, not a check or a debit card as is linked.

Second, is it okay for me to have two owner investment accounts as I wrote in the first post?

 

The first 'owner's investment' is money I sent from personal to business.

The second 'owner's startup investment' is recording items I purchased using personal cards.

I did this so it was easier to determine start up expenses for tax reasons. Is it better to just have one owner investment account?

Thanks,
Will

AlexV
QuickBooks Team

How to record owner reimbursement with recurring bank transfers?

Good day, Will1901.

 

I understand that you'd like to record the owner's reimbursement.

 

The Transfer is not advisable because can't categorize the draw in that case. It's best to write be a check or an expense.

 

Also, you'll want to seek some help from your accountant regarding investment accounts. They can guide you on how to properly set it up and record them.

 

Let me know if you need anything else. Stay safe!

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