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toddlerner
Level 4

as a sole proprietor, is the following an okay way to reimburse myself for expenses in quickbooks?…

hi, i’m a sole proprietor and i have a small business.

 

i sometimes pay for business expenses using my personal credit card – is the following an okay way to handle this in quickbooks?…

 

let’s say i used my personal credit card to pay for a $10 office expense:

 

step 1) enter the $10 using my “owner’s equity” equity account and my “office expense” expense account

 

step 2) pay myself back the $10 using my “owner’s draw” equity account and my “business checking” bank account

 

is the above an okay-enough way to handle this situation?

 

thanks for your help!  -todd

2 Comments 2
Rasa-LilaM
QuickBooks Team

as a sole proprietor, is the following an okay way to reimburse myself for expenses in quickbooks?…

It’s great to see you in the Community, toddlerner.


Based on the information provided, we’ll have to perform the following processes to reimburse the expense.

 

  • Create a journal entry for the business expense you paid for using your personal credit card.
  • Record the reimbursement

To start, let’s create a journal entry. Then, use the Partner's equity or Owner's equity to properly track the transaction. If you haven’t added the account, click on this link for the complete instructions.


When you’re ready, you can start recording the expense. Here’s how:

 

  1. Tap the New menu and pick Journal entry under Other.
  2. On the first line, choose the expense account for the purchase and type the amount in the Debits column.
  3. Go to the second line and select Partner's equity or Owner's equity.
  4. Then, key in the same amount in the Credits column.
  5. Press Save and close to keep the changes.

This is how the entry looks like after following these steps.personal expense je.png

To reimburse, you can either create a check or expense. Select which one fits your situation. For detailed instructions, go to Step 2 in the following guide: Pay for business expenses with personal funds.


I’m adding some articles to help you in the future. These resources cover all the details on how to handle the following scenarios.

 

Don’t hesitate to reach out to me again if you need help with QBO. I’ll jump right back in to help. Stay safe and have a great day ahead.

toddlerner
Level 4

as a sole proprietor, is the following an okay way to reimburse myself for expenses in quickbooks?…

hi rasa-lilaM,

 

thank you for the good how-to info! it's very helpful...

 

but may i ask a wider question?...

 

are the accounting concepts i present in my question sound? is my overall plan for how to handle personal-paid expenses and reimbursement okay-enough do you think?

 

(i'm not an accountant; i have a very small business which is mostly me, and i want to spend as little time doing accounting as possible – i'd like to stay organized, know what's going on, and give expenses totals info to my accountant at the end of the year – i'm a sole proprietor, so i really have no other big accounting obligations.)

 

thank you,

-todd

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