reimbursements

cjmiller77 · ‎April 29, 2020

I am assisting my mother-in-law (MOL) with her personal finances, her "business", and setting up the QB Online account. She is responsible for overseeing her mother's (MH) finances and must submit an annual report accounting for all her mom's financial dealings. Thus, I am using the accrual method and setting MOL and MH up as their own "company".

That said, my plan was:

When MOL uses a personal account to pay for MH's expenses, i will "bill"MH's "company", inturn when the "bill" is paid (reimbursed) from MH's "company" it would reflect as income to MOL's "company".

My question is - the paying for an item with personal funds would be considered an "expense", billable to MH and reimbursable to MOL. So am I correct in creating an "reimbursable expense" as an expense in the chart of accounts, and creating a "reimbursement income" an other income? All my experience is in bookkeeping for companies, and that's the perspective I'm trying to apply from, yet it's not truly a "company" and therefore has some variations. SIGH!!! Thanks, in advance, for your help.

GlinetteC · ‎April 29, 2020

Welcome to the Community, cjmiller77.

I've got the steps on how to record business expenses with personal funds in QuickBooks Online. First, we'll need to record the business expenses/items you paid for with personal funds.

Here's how:

Go to the +New button and select Journal Entry.
Select the expense account for the purchase on the first line.
Enter the purchase amount in the Debits column.
On the second line, select Partner's equity or Owner's equity.
Enter the same purchase amount in the Credits column.
Select Save and close.

Once done, we'll have to reimburse the money. We've got two options for this. We can either reimburse it via a Check or an Expense.

To record reimbursement as a Check:

Go to the + New button and select Check.
Select a bank account used to reimburse the personal funds.
In the Category column, select Partner's Equity or Owner's Equity.
Enter the amount, and then, select Save and close.

To record the reimbursement as an Expense:

Select + New and select Expense.
Select a bank account to used to reimburse the personal funds.
In the Category column, select Partner's Equity or Owner's Equity.
Enter the amount of the reimbursement.
Select Save and close.

I've added an article on how to handle business and personal funds in QBO for your reference: Mixing business and personal funds

You can always reach out to us if you need anything else.

View solution in original post

GlinetteC · ‎April 29, 2020

Welcome to the Community, cjmiller77.

I've got the steps on how to record business expenses with personal funds in QuickBooks Online. First, we'll need to record the business expenses/items you paid for with personal funds.

Here's how:

Go to the +New button and select Journal Entry.
Select the expense account for the purchase on the first line.
Enter the purchase amount in the Debits column.
On the second line, select Partner's equity or Owner's equity.
Enter the same purchase amount in the Credits column.
Select Save and close.

Once done, we'll have to reimburse the money. We've got two options for this. We can either reimburse it via a Check or an Expense.

To record reimbursement as a Check:

Go to the + New button and select Check.
Select a bank account used to reimburse the personal funds.
In the Category column, select Partner's Equity or Owner's Equity.
Enter the amount, and then, select Save and close.

To record the reimbursement as an Expense:

Select + New and select Expense.
Select a bank account to used to reimburse the personal funds.
In the Category column, select Partner's Equity or Owner's Equity.
Enter the amount of the reimbursement.
Select Save and close.

I've added an article on how to handle business and personal funds in QBO for your reference: Mixing business and personal funds

You can always reach out to us if you need anything else.

Darcy44 · ‎March 08, 2022

I recently joined a company that is asking me to keep track of all my travel expenses that they will reimburse. The owner has asked me to keep track and log my expenses on my quickbooks employee account, but I cannot find where that would be. Is this something that happens only on their end?

Rasa-LilaM · ‎March 08, 2022

Welcome to this thread, Darcy44.

Recording your travel expense in QuickBooks Online (QBO) is a breeze. You can either input the entry via check or expense. Let me help and guide you through the steps.

Here’s how:

Open your company and head to the New menu in the upper left to select Check or Expense.
Tap the Payee drop-down and look for your name.
Navigate to the Category details section and go to the first line to choose a liability or reimbursement account.
Fill in the remaining fields with the correct information including the amount.
Click Save and close.

Here’s an article that provides more in-depth information about the process: Reimburse an employee. It contains instructions on how to input the expense for future payments and ways to check the entry.

You can read through these articles to help you learn more about managing your transactions in QuickBooks:

If you need further assistance recording your travel expense, Click the Reply button and post a comment. I’ll get back to help you. Have a great rest of the day.

Darcy44 · ‎March 08, 2022

I don't see the menu option for 'New'. All I see is "Paychecks" "W-2" and "Profile"

Is this something that my employer needs to set up on their end? They'd be happy to do so, I was given the task of finding out how to do employee reimbursements and can let them know what they need to do if you could help me with that?

Rea_M · ‎March 08, 2022

I appreciate your immediate response, @Darcy44. With this, I can share insights on how you can record your travel expenses in QuickBooks Online (QBO).

Based on the additional details you've provided above, yes, this is something that your employer needs to set up on their end. With your current access, I can tell that it's with QuickBooks Workforce. It's where you can see your paychecks, W-2s, and personal info.

Your employer may add you to their QBO account as a Standard User. Then, customize your role and permissions for specific tasks. To learn more about this, they can refer to this article: User roles and access rights in QuickBooks Online.

Once you're added, follow the steps provided by my colleague Rasa-LilaM to record and reimburse your travel expenses in QBO. You can also refer to this article for the step-by-step guide: Reimburse an employee.

Also, to further guide you and your employer about reimbursements and tracking business expenses in QuickBooks and Payroll, I'd recommend checking out these articles:

Keep me posted in the comments if you have other user management concerns and questions about recording your travel expenses in QBO. I'm always ready to help. Take care and stay safe, @Darcy44.

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