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Level 1

I used the business checking account to pay a personal expense then reimbursed the company. How do I account for both transactions?

I used the business checking account to pay a personal expense then reimbursed my company for the same amount. How do I account for both transactions?

3 Comments
QuickBooks Team

I used the business checking account to pay a personal expense then reimbursed the company. How do I account for both transactions?

Hello, TylerMaderer.

 

I'll guide you on how to record the purchase and the reimbursement in QuickBooks Online. 

 

Depending on how you made the purchase, you'll want to create an Expense or a Check transaction to account for it. Here's how: 

 

  1. Click the + New button, then select either Check or Expense
  2. Select the business checking account under the Payment account drop-down list. 
  3. Enter the details of the purchase made.
  4. Add a memo, reference number and other important information.
  5. Once done, click Save and close

 

reimbursement1.PNG

 

Next, create a bank deposit to account for the reimbursement. Here's how: 

 

  1. Click the + New button again, then choose Bank deposit
  2. Choose the business checking account under Account. 
  3. Under RECEIVED FROM, add yourself as a customer (for recording purposes). 
  4. Choose the account where you want to track the reimbursement to. 
  5. Enter other important information such as the reimbursement amount, memo, reference number, etc.. 
  6. Once done, click Save and close

 

reimbursement2.PNG

 

Just an important bit of information, you might want to reach out to an accountant before doing this. They can guide you and tell you what accounts should be used to account for the reimbursement. They'll also ensure your books are accurate and correct. 

 

For reference about the process, you can check this article: Pay for personal expenses from a business credit card or bank account.

 

If you need to reconcile your bank, read this article for a detailed guide: Reconcile an account in QuickBooks Online

 

Other topics (with articles) can be found here

 

If there's anything else I can do for you, let me know in the reply section below. I'm here to address your concerns regarding QuickBooks Online. 

Level 1

I used the business checking account to pay a personal expense then reimbursed the company. How do I account for both transactions?

I was wondering why you couldn't just list it list it as an Owner Withdrawal?  Then you wouldn't need to reimburse the company. 

Thanks for your assistance. 

QuickBooks Team

I used the business checking account to pay a personal expense then reimbursed the company. How do I account for both transactions?

Hello there, @AnyHint.

 

You can also list it as a Personal withdrawal in QuickBooks. This way, you didn't create any reimbursement to the company. 

 

Though we don't recommend mixing business and personal transactions due to owners' equity in QuickBooks. In case you didn't use the personal withdrawal make sure to create a reimbursement to avoid losses since personal expenses should be paid back. 

 

Just follow the steps shared by jamespaul to accomplish this. Or you can visit this article: Pay for business expenses with personal funds

 

In case you haven't set up the Owner's Equity account, you can set it by following these steps:

 

  1. Go to Accounting Chart of Accounts.
  2. Select New, and choose Equity from the Account Type drop-down menu.
  3. Select Owner's Equity from the Detail Type drop-down.
  4. Enter the Name and Description.
  5. Click Save and Close.

 

I'm adding this article that you can bookmark for future reference: Add an account to your chart of accounts in QuickBooks Online.

 

Please leave a comment if you have any other questions or concerns, and I'll get back to you as soon as possible. Take good care!

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