QB balance & Bank Balance don't match

Hi there, Amanda.

May I know the account you used when recording the £310.16 expenses and how you recorded them in the program? It'll help me provide the necessary troubleshooting steps to sort this out.

In QuickBooks Online (QBO), it is strongly advised to keep business and personal finances separate to maintain clear and accurate accounting records. Despite this, there are occasions when the mixing of funds might occur. For such scenarios, here's a recommended approach to manage it in QBO:

In your case, we don't need to link your personal account to the program. We're going to create a journal entry to record the business expenses you paid for with personal funds. After that, we can choose a way to reimburse it (if necessary).

To create a journal entry, here's how:

1. Go to + New and choose Journal Entry.
2. Select the expense account for the purchase.
3. Enter the purchase amount in the Debits column.
4. Next, select Partner's equity or Owner's equity.
5. Enter the same purchase amount in the Credits column.
6. Then, click Save and close.

If you want to reimburse the expenses, refer to this article for additional details: Pay for business expenses with personal funds.

Alternatively, you can create a personal account in your Chart of accounts and then change the payment account used in your expenses using this account. These steps will let you record a VAT repayment from a personal bank rather than your business bank account. I'll guide you through the process.

First, add a new account:

1. Go to Settings and select Chart of accounts.
2. Click New and enter an Account name. 
3. Choose an Account type, then select the Detail type.
4. If this account is a subaccount, check Make this a subaccount, and select the Parent account it should be under.
5. If you select Cash at bank and in hand, Assets, Credit card, Liabilities, or Equity for the account type field, enter the Opening Balance, and fill out the starting date in the As of field.
6. Add a Description to add extra information about this account. 
7. Select Save. 

Next, reopen the expenses and change the account to a personal account.

When doing the process above, we suggest consulting with your accountant to guide you through the process to ensure the accuracy of your account since they know what's best for your business.

Finally, visit our One Intuit Help Hub to access our troubleshooting guides, online resources, and FAQs specific to your QuickBooks products and needs. You can view this brief video to help you navigate the page seamlessly: https://intuit.me/OHHvideo.

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