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Paying a credit card from a personal account

Hello! There are several uncleared payments to a credit card sitting in the uncleared items report. I checked the credit card account online and confirmed those payments were made. However, they were not made from the business checking account; they were made from other accounts set up on the credit card site. But the payments were recorded in QB as coming from the checking account.

The credit card account was reconciled, despite the fact that the business didn't actually pay them, because whoever was reconciling entered the amount of the payments as a credit in the 'Enter Credit Card Charges' window. In the Expenses Account on that window, she showed the business checking account. 

So she got the credit card to reconcile, but checking account is still showing them as uncleared. I need to undo the credit card recs several months (to cover all of these payments paid from personal accounts)? And how would I enter the payments that came from the boss' personal accounts? And once that's done , can I just delete those transactions where she entered the payments as Credit Card Refund/Credit showing the business checking account?
Sorry if this is confusing.. you can't imagine how it's been the last 10 weeks since I took over this position. If I haven't explained it clearly, please feel free to ask me anything to help explain it better. 

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Re: Paying a credit card from a personal account

I appreciate the detailed information, Monica. Let's get the transactions sorted out based on the information above.


When paying credit card (business) using your personal account, you'll need to record it as Journal Entry. Then, enter the reimbursement as Check or Expense.


Meanwhile, you don't need to undo the previous reconciliations. This is to avoid further confusion of existing transactions.


Then, you can delete the Credit Card Refunds/Credits that were recorded under the business account.


I'd also recommend seeking professional advice from your accountant. They know what's the best way of dealing these transactions.


I'll be right here if you need anything else.



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Re: Paying a credit card from a personal account



If the payment was made from a personal bank account, then bring up the credit card credit and change the account from the checking account to Owner equity investment (IF the company is taxed as a sole proprietor or partnership)


Then the checking account will be able to be reconciled


Journal entries (as suggested in another post) should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

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Re: Paying a credit card from a personal account

Can/Should I change it from the checking account to the loan account the CEO has set up? 

QuickBooks Team
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Re: Paying a credit card from a personal account

Hello there, @MonicaG.


Thanks for getting back to us. Allow me to add to this discussion and provide some clarification about paying business credit card from a personal account.


I agree with @Rustler. You should use Owner Equity for the credit card credit if you're a Sole Proprietor or Partnership. If not, change it from Checking to the Loan account already set up to track payable to the personal account.


See our how to pay for business expenses with personal funds article for the details. This link is for QuickBooks Online. However, the information can be used in QuickBooks Desktop as well.


Here are articles with steps equivalent to the one provided on the QBO link above.
•    Record a journal entry.
•    Create checks.


Before performing the steps, I highly suggest consulting your accountant to ensure your books are correct.


That should do it. Let me know if you need anything else, I’ll be more than happy to help. Thanks for reaching out and take care!