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mcomer12
March 2, 2022
Question

Used Personal Credit Cards to Pay for Upstart Business

  • March 2, 2022
  • 1 reply
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So, I've been using personal resources to pay for various upstart costs associated with my newly formed LLC. As of 12/31/2021, I hadn't been reimbursed because the company hasn't had the funds.  At this point, I would like to consider those expenses like a personal investment I've made in my company.  How do I categorize these expenses, and do I need to upload the receipts for each expense?  Or, can I add up all of the expenses, create a journal entry, and keep the receipts for backup?

1 reply

Rustler
Rustler
March 2, 2022

Avoid journal entries in QB, they do not always work as desired and often are not included in reporting

 

create a cash type bank account called owners, deposit the funds to that account and use owner equity investment as the source account for the deposit.

 

then pay the expenses from that cash type owners account

 

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

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