Skip to main content
February 1, 2024
Question

I paid rent from personal account

  • February 1, 2024
  • 1 reply
  • 0 views
How do I reconcile when paying from a personal account

1 reply

Nicole_N
February 1, 2024

It's good to have you posting in the Community, @jakied1. I've got all the steps to help you reconcile a payment from a personal account in QuickBooks Online (QBO).

 

In QBO, the proper way to record transactions affecting your personal and business accounts is to make a journal entry. Following these steps will allow you to record a business expense that was funded by personal funds:

 

  1. Click the + New button, then select Journal Entry.
  2. On the first line, select the expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Click Save and close.

 

I'm adding this article for more information: Pay for business expenses with personal funds.

 

Once everything's good, you can start the reconciliation process. Here's how:

 

  1. Go to Settings  and then Reconcile. If you're reconciling for the very first time, select Get started.
  2. From the Account ▼ dropdown, select the account you want to reconcile. Make sure it's the same one on your statement.
  3. Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
  4. Enter the Ending balance and Ending date on your statement. Some banks call the ending balance a "new balance" or a "closing balance."
  5. If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
  6. When you're ready to start, select Start reconciling.
  7.  

Check out these articles below to find out how to enter personal expenses and pay them using owner funds for future reference: 

 

 

Come back to this post if you need clarification about the process or other reconciliation concerns. Just leave your reply below and I'll surely get back.