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February 6, 2023
Question

business credit card payment with personal account

  • February 6, 2023
  • 1 reply
  • 0 views

I occasionally make personal purchases with the business credit card. I then pay the business credit card with the personal checking account. How do i categorize the credit card payment?

Do I record it as a credit card payment? If yes, from who to who?

Or do I categorized it as a owners contribution?

1 reply

February 6, 2023

Hello, BandN. I can help you how to handle your business credit card payment with a personal account.

 

When using the business account to pay personal expenses, you'll have to record them in QuickBooks and then reimburse your company. I'll guide you through the process.

 

To record a personal expense from a business credit account:

 

  1. Go to +New and select either Check or Expense.
  2. Select the Payee.
  3. Choose the Bank Account, Cash Account, or Credit Card you used to make the purchase.
  4. In the Category details section, select the dropdown menu to select the tax category that fits your need.
  5. Enter the Amount of the purchase.
  6. Select Save and close.

 

After recording the expense, reimburse the company. The steps are outlined below:

 

  1. Go to +New, then Bank deposit.
  2. Select the Account to add the reimbursement to, and select the Date.
  3. Go to the Add funds to this deposit section. In the Received From field, enter the person who made the personal expense, then select the account.
  4. Select the Payment Method and enter the reimbursement amount.
  5. Tap Save and close.

 

I'm adding these links for more details about managing your accounts:

 

 

I'll be around if you need anything else managing your QuiciBooks accounts.

BandNAuthor
February 8, 2023

Thank you for your response but I think that the situation might be different. 

 

I bought personal item with my business credit card. 

Then I paid that business credit card with my personal funds (more like a reimbursement )

 

Because my QBO is link to my bank account, my banking screen for the credit card is showing:

1.  all expenses from the credit card that I need to categorize. Should I categorize all personal expenses as owner's distribution?

 

2. the CC payment "thank you Web" for X amount. 

where do I should categorize this card payment? 

 - record as credit card payment? 

- record as a transfer?

- categorize?

 

Thank you