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rcmat
Level 1

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

The Expense record in the video doesn't even have a Payment Account field.
Solved
Best answer June 08, 2020

Best Answers
Mark_R
QuickBooks Team

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

Hi there, @rcmat.

 

You'll want to add the owner's bank account in the Chart of Accounts so you can select it when creating an expense transaction. Let me guide you through the steps.

 

  1. In your QuickBooks Online, click Accounting from the left menu and select Chart of Accounts.
  2. Click the New button.1.PNG
  3. In the Account window, select Bank from the Account Type drop-down.
  4. Select the Detail Type, then enter the name of the account.
  5. Click Save and Close.2.PNG

Here's an article you can read for more details: How to create a new parent account or subaccount.

 

Once done, you'll have to select the owner's bank account in the Payment account drop-down.3.PNG

You might also want to check out this article to learn how to pay for business expenses with personal funds: Record business expenses you made with personal funds.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day and stay safe.

View solution in original post

4 Comments
Mark_R
QuickBooks Team

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

Hi there, @rcmat.

 

You'll want to add the owner's bank account in the Chart of Accounts so you can select it when creating an expense transaction. Let me guide you through the steps.

 

  1. In your QuickBooks Online, click Accounting from the left menu and select Chart of Accounts.
  2. Click the New button.1.PNG
  3. In the Account window, select Bank from the Account Type drop-down.
  4. Select the Detail Type, then enter the name of the account.
  5. Click Save and Close.2.PNG

Here's an article you can read for more details: How to create a new parent account or subaccount.

 

Once done, you'll have to select the owner's bank account in the Payment account drop-down.3.PNG

You might also want to check out this article to learn how to pay for business expenses with personal funds: Record business expenses you made with personal funds.

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day and stay safe.

View solution in original post

rcmat
Level 1

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

Thank you, Mark_R. That works, and I no longer have to use the "undeposited funds" account as the source of the owner-paid expense. 

rcmat
Level 1

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

Thank you, Mark_R. I no longer have to use "undeposited funds" as the source of personal funds used to pay for an expense.

Mark_R
QuickBooks Team

The video "How to pay expenses w/ owner funds in QuickBooks Online" says "you can skip the Payment Account." QBO doesn't allow this. Should I select Undeposited Funds?

I appreciate you getting back to us, @rcmat.

 

I'm happy to know that I was able to resolve your concern about paying expenses with owner funds in QuickBooks Online.

 

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please know that the Community team and I are always here to help with any QuickBooks concern you may have. Thanks for coming to the Community, wishing you continued success.

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