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Join nowHow do you record a shared expense 50/50 between an owner and vendor (co-owner)?
Great to see you here, @RK44,
I can share some information on how you can record expenses in QuickBooks Online.
To get started, make sure both parties (owners) are set up as vendors in QBO. If the business expense is made using the owner's personal funds, you can enter a JE to record the transaction:
If you want to reimburse the owners for the company expense, you can enter it as a check or as an expense.
Reimburse using check:
Click the Plus icon (+).
Choose Check from the list.
Select Save and close or Save and new.
Record the refund as an expense:
Click the Plus icon (+) on the Toolbar.
Select Expense.
Hit Save and close.
That should get you on the right track, @RK44. You can also refer to this article for the complete steps: https://quickbooks.intuit.com/community/Help-Articles/How-to-pay-for-business-expenses-with-personal...
All of this information is also available in our video tutorial on Recording Expenses with Owner Funds for your convenience.
If you have any questions with your account, I want you to know that I am here for you. Thanks for visiting our forums. Have a great day!
owners are NOT vendors
Owners have equity accounts, if you have a co-owner that means you are registered as a partnership with the state and have a federal EIN. If that is not true, then you need to seek the advice of a business tax accountant and maybe a business lawyer.
There is no shared expense in a partnership, the partnership is a business, it earns money and it pays out money for expenses. At the end of the year you file a form 1065 and as part of that a form K-1 is created per partner showing their share of income and expenses
For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here
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