Skip to main content
April 12, 2021
Question

Can you use business funds to pay personal taxes ?

  • April 12, 2021
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

April 13, 2021

Hello there, allaround05. 

 

Yes, you can use business funds in paying personal taxes. However, this can cause tax problems in the future.

 

Since it happens sometimes, there are things that you can do after doing so.

 

The first thing to do is to record it in QuickBooks.Let me provide the steps on how to record a personal expense from a business account.

 

Here's how:

  1. Click + New and then choose Check or Expense.
  2. Choose a Payee from the drop-down ▼ menu and select the Bank AccountCash Account, or Credit Card you used to make the purchase.
  3. Select the Bank AccountCash Account, or Credit Card  used to make the purchase.
  4. In the Category details section, select the drop-down menu ▼ to select the tax category.
  5. Enter the Amount of the purchase
  6. Save and close or Save and new.

 

Then after that, you can reimburse the company.

 

Here's also how:

  1. Choose + New and then select Bank Deposit.
  2. Click 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. Select Save and close or Save and new.

 

You can also visit this page to know how to mix business and personal funds.

 

You can also ask your accountant  to guide you on how to record your account accurately.

 

For future reference, you can check out this article on how to how to reconcile an account in QuickBooks Online.

 

Feel free to comment anytime if you have clarifications in paying your taxes. Have a good one!