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November 22, 2021
Question

How do I record expenditures incurred and paid from my personal bank account before my business bank account was set up?

  • November 22, 2021
  • 1 reply
  • 0 views
Lots of expenditures such as companies House registration, accountants, domains etc. I have receipts, and already paid out, not sure where to record the payments.

1 reply

DivinaMercy_N
November 22, 2021

Hi there, @bryanhuntwithay-. I'm here to give you steps on how you can record expenditures paid from your personal bank account.

 

In QuickBooks Online (QBO), you can record business expenses you've made with personal funds by creating a Journal Entry. Here's how:

 

  1. Sign in to the QBO and select New.
  2. Then, choose Journal entry.
  3. In the first line, choose the expense account for the purchase.
  4. Next, enter the purchase amount in the Debits column.
  5. From the second line, pick Partner's equity or Owner's equity.
  6. Enter the same purchase amount in the Credits column.
  7. Once done, click Save and close.

 

Then, once your business bank account was setup, you can reimburse the money by recording a cheque or an expense.

 

For more information about this, please see this article: Pay for business expenses with personal funds. 

 

To easily track the transactions allocated for a specific account in QBO, you can simply run a Quick Report. Let me guide you how:

 

  1. Navigate to the Gear icon and choose Chart of Accounts.
  2. From there, look for the account you need where the transactions belong.
  3. Then, click the drop-down arrow and select Run report.

 

If you need additional assistance recording expenditure paid by your personal account, feel free to leave a reply below. I'd be happy to assist you more. Have a good one.