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Level 1

My partner and I paid for our start up expenses through personal accounts. How do we enter invoices if we did not pay through our business account?

We do not wish to mix our personal accounts with the business from this point on. We just need to know how to do this first round of invoices so we can close the books for the first time.
Solved
Best answer 02-20-2020

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QuickBooks Team

My partner and I paid for our start up expenses through personal accounts. How do we enter invoices if we did not pay through our business account?

I'll help you record the transaction, Nokia_151. This will just take a few clicks.

 

First, let's add the personal bank/credit card account. This way, we can link it when we create the expense transaction. 

 

Here's how:

  1. Click Accounting.
  2. Go to Chart of Accounts.
  3. Click New.
  4. Select the Account Type and Detail Type.
  5. Enter the desired name, then click Save and Close.

Next, let's create an expense transaction or check to record the expenses. Here's how:

  1. Click the New or Plus sign (+) button.
  2. Select either Check or Expense.
  3. Fill in the necessary fields.
  4. Click the Payment account drop-down arrow, then select the personal account.
  5. Click Save and close.

Although, if this expense hasn't been paid yet, you can create a bill, then pay it using the personal account.

 

I'll share the article on how to pay for business expenses with personal funds. This will provide the steps on how to reimburse a personal expense. 

 

If another question arises, please feel free to reach out to us again. We'll respond to you as soon as we can. 

View solution in original post

2 Comments
Highlighted
QuickBooks Team

My partner and I paid for our start up expenses through personal accounts. How do we enter invoices if we did not pay through our business account?

I'll help you record the transaction, Nokia_151. This will just take a few clicks.

 

First, let's add the personal bank/credit card account. This way, we can link it when we create the expense transaction. 

 

Here's how:

  1. Click Accounting.
  2. Go to Chart of Accounts.
  3. Click New.
  4. Select the Account Type and Detail Type.
  5. Enter the desired name, then click Save and Close.

Next, let's create an expense transaction or check to record the expenses. Here's how:

  1. Click the New or Plus sign (+) button.
  2. Select either Check or Expense.
  3. Fill in the necessary fields.
  4. Click the Payment account drop-down arrow, then select the personal account.
  5. Click Save and close.

Although, if this expense hasn't been paid yet, you can create a bill, then pay it using the personal account.

 

I'll share the article on how to pay for business expenses with personal funds. This will provide the steps on how to reimburse a personal expense. 

 

If another question arises, please feel free to reach out to us again. We'll respond to you as soon as we can. 

View solution in original post

Highlighted
Level 15

My partner and I paid for our start up expenses through personal accounts. How do we enter invoices if we did not pay through our business account?

There are several ways to do paying for business expenses with personal funds, I prefer

bring up an expense transaction, list all the expense accounts you need to and the total amounts for each
then on the next line


IF, if you are taxed as a sole proprietor or a partnership, select your equity investment account and enter the total as a negative number, save
OR
IF you are taxed as a c-or s-corp select a liability account you set up named due to [name] and enter the total as a negative number, save. Later you pay yourself back using the due to account as the expense for the payment

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

 

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