What is the best way to record expenses used with a personal credit card? It is for a sole member LLC so it will be taxed as a DBA so I want to keep all expenses recorded
I would keep track of a personal credit card as a separate register, and then when you see the balance of personal funds that you have used record a payment as Owner's Equity to record the money you put into the business when paying off that card.
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.
Go to the Plus icon (+).
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.