I’m the sole owner of an s-corp and have an owner’s equity account. This months cc bill has both personal and business purchases. I would like to pay off the credit card balance using $ from the company checking account.
For example : I owe $150 on the cc, $25 for personal purchases and $125 for business purchases. What is the best way of dealing with this in QB. Do I draw the $25 out of the owners equity account?
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Everything that was already said.
You need two cards--one in your personal name for personal expenses and one in your business name for business expenses. In order to make it easy to tell which is which, spend the $5.00 (or whatever the fee is) and get custom cards made. Have a business-related picture, such as your business logo, put on your business card, and have a personal picture, such as your wife, kids, dog, on your personal card. And unless your wife works in the business and has actual business expenses, don't give her a business card.
"the owner would use the business card points for personal travel or to purchase personal items."
Which makes it Distributed Value to them, for tax purposes.
"There was also a lot of "employee advances" categorization due to the employee paying for things that were personal in nature but wanting the company to provide reimbursement. The employee in question was one of the co-owners."
The company's funds might be used, but that doesn't make it a Business expense; that is why you post to the Balance Sheet = give that visibility.
"It was a mess and I relieved myself of those duties because I didn't want to learn bad practices and they weren't interested in changing anything. Business as usual."
You get a lot of support, or lack thereof, from their CPA, too. If the CPA lets "employee advances" ride year after year without every settling up, or worse, offsets it to Misc Expense, I stop working with those people.