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jeremieandre_fr
November 7, 2022
Solved

Enter original investments to start the business

  • November 7, 2022
  • 1 reply
  • 0 views

Hi,

 

I recently setup QuickBooks for our business.

Before we started and got a business bank account, my business partner & I used our personal money/accounts to make a few purchases to get started.

 

I would like to enter those original expenses on QuickBooks to record them for next year tax season.

 

How do I do that?

 

1. I understand that I should create 2 equity accounts (1 for me and 1 for my business partner) un the Charts of Account, under Equity > Partners Investments. Is that correct?

2. Once the equity accounts are set, where and how do I record the expenses/transactions we made with our personal money? I went to the Expenses menu > New transaction > Expense, but I don't know what to select under "Payment account".

 

I've spent hours trying to do it, and I'm not getting anywhere, and the customer support couldn't get me an answer neither. Hope someone here can help me out 🙏 

 

Jeremie

Best answer by AlcaeusF

Hello @jeremieandre_fr,

 

Thank you for choosing QuickBooks as your accounting software. I can help you enter those expenses in QuickBooks Online.

 

Yes, you're right. You'll need to create two equity accounts to track personal funds.

 

I recommend you use the Journal Entry feature to record the business expense you paid for with personal funds. Add the purchase under Debits and the equity account under Credits.

 

For the reimbursements, you have two options. You can either use a check or an expense.

 

The process of recording business expenses you made with personal funds is easy to follow. For detailed instructions and video tutorials, you can visit this link: Pay for business expenses with personal funds.

 

If you're unsure of the accounts to select or have more accounting concerns, It would be best to consult an accountant. They can provide expert advice to ensure your books are accurate and correct.

 

Also, there are times you use a business account to pay for personal expenses. I've included an article you can use in the future if this happens: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

 

Drop a comment if you have additional questions about entering purchases in QuickBooks. I'm always here to help. Take care. 

1 reply

AlcaeusF
AlcaeusFAnswer
November 8, 2022

Hello @jeremieandre_fr,

 

Thank you for choosing QuickBooks as your accounting software. I can help you enter those expenses in QuickBooks Online.

 

Yes, you're right. You'll need to create two equity accounts to track personal funds.

 

I recommend you use the Journal Entry feature to record the business expense you paid for with personal funds. Add the purchase under Debits and the equity account under Credits.

 

For the reimbursements, you have two options. You can either use a check or an expense.

 

The process of recording business expenses you made with personal funds is easy to follow. For detailed instructions and video tutorials, you can visit this link: Pay for business expenses with personal funds.

 

If you're unsure of the accounts to select or have more accounting concerns, It would be best to consult an accountant. They can provide expert advice to ensure your books are accurate and correct.

 

Also, there are times you use a business account to pay for personal expenses. I've included an article you can use in the future if this happens: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

 

Drop a comment if you have additional questions about entering purchases in QuickBooks. I'm always here to help. Take care. 

J
jeremieandre_frAuthor
November 8, 2022

Thank you SO MUCH @AlcaeusF, I'm very grateful for your help 🙏 

It all worked!

AlcaeusF
AlcaeusF
November 8, 2022

Hello jeremieandre_fr,

 

You're welcome! I'm glad I was able to help you handle purchases from personal funds. Please know we're always available in this public space anytime you need assistance with QuickBooks.

 

You can click the Reply button below or create another thread in the future if you have more concerns, and we'll be sure to help out. Take care.

 

 

 

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