I'm here to clarify things out about categorizing the computer for the business, BryanS1.
In QuickBooks Online, we don't mix personal with business transactions. If you've bought the computer and want the business to reimburse it, you can set up a fixed asset account.
Let me show you how:
- Go to Settings ⚙, then select Chart of Accounts.
- Click New.
- From the Account Type ▼ drop-down, select Fixed Assets or Other Assets.
- From the Detail Type ▼ drop-down, select the option that closely describes the asset.
- Name the account, then mark the Track depreciation of this asset checkbox.
- Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
- When you're done, click Save and Close.
If you need to calculate your asset’s depreciation, we recommend you to work with your accountant who knows the best methods. You may also want to check the Chart of accounts to learn what each account is for and what it does.
After setting up the fixed asset account, you can write an expense to record the purchase. Then, categorize it using the account you've created above to track the transaction.
If you're using QuickBooks Self-Employed (QBSE), entries categorized under Personal aren't calculated for estimated taxes. If you need to include this expense and report on the Schedule C form, you can categorize it under Other business expenses.
You can browse this link to learn more about categorizing entries in QBSE: Schedule C and expense categories.
Also, you have the option to split a single transaction. It still depends on your business need. Check out this link on how it works: Split transactions in QuickBooks Self-Employed.
Stay in touch with me if there's anything else I can help you with categorizing your purchases in QuickBooks. I'll be right here whenever you need additional information about this.
