Hello there, @Ira_Get.
I’m delighted to share with you additional information on how to ensure your expense transactions are recorded properly.
In managing a business, it’s important to keep track of all of your business-related transactions accurately. This is to avoid messing up your accounting data as the annual tax filling is fast approaching.
To record your credit card expenses, let’s create a journal entry. Here’s how:
- Click the Plus icon (+).
- Choose Journal Entry.
- On the first line, specify the appropriate expense Account for the purchase.
- Enter the amount of the purchase in the Debit column and the customer’s name.
- On the second line, in the Account column, enter the Owner’s equity or Partner equity.
- In the Credit column, enter the amount of the purchase.
- In the Memo field, add Reimbursable to help you identify the transaction later.
- Select Save and close.
Once it‘s created, you can now record a reimbursement transaction via writing a check or as an expense.
Here’s how:
- Go to the Plus icon (+).
- Select Check.
- In the Choose a payee field, type in the partner’s name/owner.
- Choose the Bank Account you are reimbursing from (you can also use petty cash).
- In the Account column, select Partner’s Equity or Owner’s Equity.
- Type in the Amount of the reimbursement.
- Click Save and close or Save and new.
That should do it!
For additional insights, you may check out this article: How to pay for business expenses with personal funds.
Don’t hesitate to drop a comment below if you have other questions about recording your business and personal transactions. I’d be glad to help you.
