Hi there, Cvccharitiesfinances. You can create a Liability Account in QuickBooks Online (QBO) to track what you owe them. However, if you are the owner paying with personal funds, you can use an Equity Account instead when recording the expense.

Once you reimburse them via Zelle and the transaction appears on your banking page, you can record it as a transfer to clear the debt. Alternatively, you can create a Check transaction and categorize it to your Liability account.

Here’s how to create a liability account:

1. Hover over to All apps and select Accounting.

2. Choose the Chart of account and fill in the necessary information.

3. Set Account Type: Choose either Other Current Liabilities or

Long Term Liabilities from the dropdown

4. Choose the appropriate Detail type name

5. Click Save.

After that, create an expense using equity if you’re the owner:

1. Go to + Create and  select Expense under Vendors.
2. Enter the vendor or person who paid in the Payee dropdown.
3. Instead of selecting a bank account, choose an equity account.
4. Enter the date of the expense.
5. The amount they paid.
6. Click Save and close.

You can also create a check in the +Create under Vendor menu, choose Check, add a Payee, and use your liability account.

Refer to this article on how to manage third-party sales and fees within your connected QuickBooks Online channels: Record paid in sales and fees.

If you have any additional concerns, please reach out to us. We’re always here to help.

Hi @cvccharitiesfinances,

Just checking in to see if the solution we shared worked for you.

Did it fix the issue, or are you still having trouble?

Happy to help if you need any more assistance!