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jh1988
Level 1

Owner used personal account for business expenses

My client bought some product to resell for her business on her personal credit card. She is just starting an ecommerce store. In QBO I entered a manual expense to record the payment for product Inventory and shipping cost from the vendor invoice. As payment I chose the dummy credit card account that I created for her credit card that is not actually linked. So I recorded the inventory items and shipping and charged that card. Then I did a journal entry to move the money from the credit card to show up as an owner’s contribution. I just want to make sure that I record the inventory and then show that she paid with a personal credit card and it was added as a owners contribution. Did I do this correctly? How would I do this for other bills that are not inventory. Like business license, subscriptions, ect that she has paid?

2 Comments
john-pero
Community Champion

Owner used personal account for business expenses

You did just fine although a single bank type clearing account would suffice along with the equity account to track any and all owner paid expenses

jh1988
Level 1

Owner used personal account for business expenses

What if they want to be paid back for it? Should i make another account called owners loan which would be a liability account?

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