Thank you @Angelyn_T . Your explanation is clear and helpful, but I think I'm getting more lost. I'm so sorry in advance for a bunch more questions to clarify. Maybe this is too complex for this forum, but I'm going to give it a try anyway.
To confirm from my second post, do I have the first 2 steps right and are you addressing the third step of the original answer?
'Yes, once you've used your personal account for business expenses, you have to record a check for reimbursement."
To clarify, personal cash (not an account) was used for someone else's business expenses. Does that make any difference?
Next, according to the original answer these expenses get entered in and applied to a liability account. Instead, should they be in the Owner's Equity account to later record this check/expense under Owner's Equity in step 2 below?
Part of the dilemma is that you might be referring to QB Online as I cannot find an "Expenses Window" in Desktop. Though I'd rather enter it as an expense from the bank account.
Since this is cash, your second option would not apply correct? Or are you referring to using the deposit to record the reimbursement of the cash funds?
From your post:
- From the Check or Expense window, select a bank account you'll use to reimburse the personal funds.
- In the Expenses column, select Partner's Equity or Owner's Equity.
- Enter the amount of the reimbursement.
- Save the transaction.
On the other hand, you can record a deposit when reimbursing personal expenses paid from a business credit card or bank account.
- Go to the Banking page.
- Tap on Make Deposits.
- Select the account to add the reimbursement from the Deposit To dropdown, then input the Date.
- In the Received From field, enter the person who made the personal expense, then select the account. You can add the person as a customer if they aren't in your books already. Even if they're not a customer, this is the best option.
- Select the Payment Method, then enter the reimbursement amount.
- Tap on Save and Close.
