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Chloeh10
November 16, 2020
Question

How do I show investments/purchases using personal bank account?

  • November 16, 2020
  • 1 reply
  • 0 views

My partner started a security company just over a year and a half a go and this month we have started to use Quickbooks to start tracking expenses/sales etc. Even though the company was started a year a go, he had not started trading, however he invested money to start it.

 

He has only just opened a business bank account, however all previous investments/purchases have been made over the past year using his personal account which is therefore mixed in with all of his personal outgoings. 

 

My first question is, how do I record expenses that have been made using his personal account? (this is not connected to Quickbooks, nor will it be reconciled)

 

My second query is, the business bank account does not allow £1000 cash deposits. He had a cash sale of £1000, which he deposited into his personal account and is going to transfer to the business account. What is the correct way of showing this on Quickbooks?

 

Thanks,

Chloe

1 reply

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GlinetteC
November 17, 2020

I can help you with how to handle these in QuickBooks Online, Chloe.

 

Please note that we don't advise our customers to mix business with personal funds. What we can do is to reimburse it as a check or an expense. I'll walk you through on how to do it:

 

  1. Navigate from the left panel and select + New button
  2. Choose Expense.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the Category column, choose Owner’s Equity or Partner’s Equity.
  5. Enter the amount.
  6. Verify the details, and then click Save and close.

For more information, please check out pay for business expenses with personal funds. 

 

I'm also adding some links for future reference:

Tag me directly if you need more help with handling your accounts in QuickBooks.

    C
    Chloeh10Author
    November 18, 2020

    Hi @GlinetteC 

     

    Thank you for providing me with this information.

     

    At the moment, I do not want to reimburse the expenses I just want to record them.

    I have followed your steps and I need to select a payment account, however the personal card is not on Quickbooks.

     

    So for example, an expense for sign writing on a motor vehicle was paid for in May using a personal card. I am now trying to add this to QB to get the books up to date.

     

    1. Would the category not be a vehicle expense for example, rather than owners equity?

    2. How do I record the payment account?

     

    Thank you.

     

     

     

    A
    Ashleigh1
    November 18, 2020

    Hello Chloeh10, thanks for coming back to us. If you used the personal card and want to account for it needs to be owner equality but your probably best of speaking to an accountant about it. As we are not trained accountants just technical support. 

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