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Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Is there a way to pay all business expenses from my personal credit card?

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Best answer October 19, 2018

Best Answers
Level 15

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

There are several ways to do paying business expenses from personal funds, this is one I prefer

1. Create a dummy bank account called owners, use write checks (do not print them, they are just a form for entering transactions) on that account to enter and pay the bills/expenses.

2. When you are finished, the balance will be negative, make a deposit for the total amount and in the account block select

for a sole proprietor - owner equity, or better owner equity investment (technically you can not borrow from yourself, if you want to be paid back you use equity drawing for that payment)
for a c- or s-corp  - create a current liability account named due-from=[name] and use that
for a partnership - owner investment OR the liability account like the corporation


View solution in original post

23 Comments
Level 15

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

There are several ways to do paying business expenses from personal funds, this is one I prefer

1. Create a dummy bank account called owners, use write checks (do not print them, they are just a form for entering transactions) on that account to enter and pay the bills/expenses.

2. When you are finished, the balance will be negative, make a deposit for the total amount and in the account block select

for a sole proprietor - owner equity, or better owner equity investment (technically you can not borrow from yourself, if you want to be paid back you use equity drawing for that payment)
for a c- or s-corp  - create a current liability account named due-from=[name] and use that
for a partnership - owner investment OR the liability account like the corporation


View solution in original post

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

How do you create a "dummy" bank account when QB makes you connect everything?
Level 15

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

bank type account, cash
Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

@Rustler Related to the same question, can you pay directly to your personal credit card company using your business checking account to cover for the part that is business expenses? And then just record it as a business expense in quickbooks.
Thank if you can help to clarify this.
Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

 wondering the same thing???

Level 2

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

when you reimburse the shareholder for business expenses put on the personal credit card is it then an owner draw? or owner distribution? or what?

Level 2

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

The version of QuickBooks I am using I only have the option of entering a VALID account, is there a way around this that you know of?

QuickBooks Team

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Hi DuncansPools,

 

You can set up dummy bank account in the chart of accounts. Please make sure to leave the bank information blank. 

  1. Click Company located at the top.
  2. Choose Chart of Accounts.
  3. Click the Account drop-down list located at the bottom.
  4. Select New.
  5. Choose Bank and click Continue.
  6. Enter the Account Name, and leave the bank information blank.
  7. Click Save & Close.

Once done, if you're prompted to set up the bank feed, just click No.

 

Please let me know if you have any additional questions about QuickBooks. Thanks.

Level 2

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Awesome!! Thank you :)

Level 15

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Never pay the Personal Credit Card directly from the business. That looks bad. Remove the funds properly, as draw or whatever applies. Then pay your own Personal Balances, personally.

Level 9

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

No, it is just a reimbursement to someone for paying or purchasing an item for the company so it is just a reimbursement, same as to any other employee.

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Thank you for this. Very simple and does exactly what I needed to do.

QuickBooks Team

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

That's what we love to hear, @truebluefirm.

 

A lot of effort went into making QuickBooks Online as user friendly as possible, so we're thrilled to hear that you're having an easy time with it.

 

Your QuickBooks subscription includes a variety of features, so be sure to check out our Community tutorials if there are any you haven't tested out yet.

 

Also, check out our blog to see what's in store: https://intuit.me/2L2zqTv.

 

Always feel free to drop by the Community if you have other questions managing your expense transactions. I'm always here to help.

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Wouldn't the liability account be Due TO- name? If the company owes it back to the owner then it is due to and should be an Other Current Liability. When a business owner takes distributions in excess of the basis of the company is when you create a Due From- name account and it is an Other Current Asset. 

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

I'm doing quickbooks online for the first time.  I am trying to sort out some books for a friend.  They started a business and put alot of stuff on there personal credit card then proceeded to make payments to that credit card out of the business account.  I know this is wrong but I'm not sure how to fix it.

 

 

QuickBooks Team

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Welcome to the Community, @CarolLeslie1. I'm here to share information about paying business expenses with a personal card.

 

As you mentioned in your post, it's generally not recommended to mix personal and business funds, but there may be times where it's necessary. I recommend the following article as it covers the process of recording and reimbursing business items purchased with personal funds: How to pay for business expenses with personal funds.

 

Also, I wanted to take a moment and mention that I think it's nice of you to lend a hand and help with your friend's books. Since you also mentioned that you were new to QuickBooks Online, I wanted to link some video tutorials to help you get the most out of the software. Here you can access over one hundred videos on topics ranging from getting started to tracking sales: QuickBooks Video Tutorials

 

Please let me know if you have any questions about the article or anything else. Have a great day. 

Level 3

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

How do you "make a deposit" in QBO?

Moderator

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Welcome to the Community, tonjunee.

 

I'm here to walk you through the process making a deposit in QuickBooks Online. The steps are pretty easy. I'll show you how:

 

  1. Click the + New button.
  2. Under Other, select Bank deposit.
  3. From the Account drop-down menu, choose the account you want to deposit the amount.
  4. Put a checkmark for each payment.
  5. Click Save and close.

For more details, please check out this article: Record and make Bank Deposits in QuickBooks Online.

 

To review your deposits, you can check it by going to the Banking page, selecting the bank/credit card account. Then, click the Go to Register link. From there, The most recent transaction will appear at the top of the register.

 

When recording deposits in QuickBooks, it will affect certain accounts, you'll want to check out on how to run reports to see your financial status of your business.

 

Let me know if you need more help with navigating QuickBooks. I'll be here to assist you.

Level 3

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Thank you, this works!

 

I'm trying to pay for personal credit cards using this method to bypass posting an actual credit card unto the books.

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

I believe that I'm in a similar situation. My business operating account and my personal savings account are at the same bank. When funds are low in the business account, I wount transfer funds from my personal account. When sales are good, I would transfer back what I took myself.  How do I record that?

QuickBooks Team

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

I'll help you record these transactions in QuickBooks Online (QBO), @SMenterprises.

 

Are your business operating account and personal account both sub-accounts of your parent bank account?

 

If so, we can create a bank transfer to record the movement of funds from one account to another in QuickBooks. Here's how:

 

  1. Click the +New icon and select Transfer.
  2. Select the Transfer Funds From the drop-down list the bank account you wanted to move the money from.
  3. Choose the bank account from the Transfer Funds to drop-down arrow where you want to funds to transfer to.
  4. Enter the amount and fill in the rest of the information. 
  5. Click Save and close.

 

Also, you can use the steps provided in this article to record business expenses you made with personal funds in QBO: Pay for business expenses with personal funds

 

In addition, you can run a quick report of your business and personal account. This will help you review all of the transactions you've made with these accounts. Just follow these steps:

 

  1. Go to the Accounting menu and select Chart of Accounts
  2. Look for the account and select the drop-down arrow below the ACTION column. 
  3. Choose Run report to view its data.

 

That should do it! Stay in touch with us here in the Community.

Level 1

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

I'm actually using QB desktop 2019.

QuickBooks Team

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Hi there, SMenterprises.

 

We can also transfer funds in QuickBooks Desktop. You can follow these steps on how to do it:

  1. Go to the Banking menu and select Transfer Funds.
  2. Enter all details including the amount and the affected accounts.
  3. Click Save & Close.

This is the easiest way to record the funds you transferred to another account. 

 

Please post again if you have more questions. Have a great day!

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