Reimbursing start up cost with creating zero check balance for payroll

codyhill22 · ‎August 06, 2020

Hello everyone,

I have searched and can not seem to figure out a solution for my problem. When starting up the business, I used a personal debit card for supplies but also for paying my employees (vendors) for their work that week. I followed the steps to create a NEGATIVE line item on each individual expense (using owner investment category) then reimbursed myself from the owner investment category.

All expenses and accounts appear to be perfectly balanced, however when I go into Payroll>Vendors>and the select an employee that received a paycheck from that debit card account, it shows a zero balance for that check (see bottom two expenses below). Once our business bank account was finally set up we transitioned into paying the employees from that account as normal (top 2 expenses below are from business account).

How can I make this reflect what the employee was actually paid, instead of showing a zero balance? Thank you so much

AileneA · ‎August 06, 2020

Hello, codyhill22.

I appreciate the screenshots you've provided. One of the few reasons why it shows zero is the account associated is incorrect. Let's double-check the account to verify if selected to the correct one. We can run the Transaction List by Vendor report. It'll show you all transactions for each vendor and the account that assigned. Here's how to do it:

Click the Reports.
In the search bar enter Transaction List by Vendor.
Tap Customize.
Modify the Date, and Filter columns.
Press Run report.

Feel free visit the Community for more questions and I'll be happy to answer them for you. I hope you have a great week ahead.

codyhill22 · ‎August 06, 2020

I suppose I am still confused of what I am looking for after running that report.....

RCV · ‎August 07, 2020

Thanks for coming back, codyhill22.

Did you run payroll when paying your employees in QuickBooks Online (QBO)? This helps us isolate why it's showing a zero balance for the paid employees.

On the other hand, we recommend not to mix business and personal funds (though it happens sometimes). To record business expenses you made with personal funds, you can record it as a check or an expense.

Let's record first the business expense you paid for with personal funds by creating a Journal entry. Let me show you how:

Click the + New Plus icon.
Select Journal entry under Other.
Choose the expense account for the purchase on the first line,
Enter the purchase amount in the Debits column.
On the second line, choose Partner's equity or Owner's equity.
Enter the same purchase amount in the Credits column.
Press Save and close.

Once done, follow Step 2 in this article to reimburse the personal expense: Pay for business expenses with personal funds.

Then, run the Transaction List by Date report to see the transaction created for the employees using that bank account. Just customize it to Account and Name columns when running the report.

Here's how:

Go to Reports.
Enter Transaction List by Date.
Click the Customize tab.
Choose Filter.
Tick the Name drop-down and choose the employees' names.
Tap the Account drop-down and select a specific bank account.
Press Run report.

For more details about customizing reports, check out this article: Customize reports in QuickBooks Online.

To learn more about managing your reports, refer to Run reports in QuickBooks Online article.

I'll be right here to continue helping if you have any other concerns or questions about QBO. Assistance is just a post away. Have a great day ahead.

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Reimbursing start up cost with creating zero check balance for payroll