Skip to main content
February 2, 2023
Question

If I used my personal checking account to pay a few business expenses, should I sync it with Quickbooks Online?

  • February 2, 2023
  • 1 reply
  • 0 views

Currently, I only have my business bank account synced with Quickbooks Online (QBO). However, there are a few transactions from the beginning of the year on my personal bank account that would qualify as a business expense. How do I record these transactions in QBO? Should I simply sync my personal bank account? 

1 reply

February 2, 2023

To answer your question about syncing your personal checking account is no, jazabellecc.

 

Combining personal and business funds aren't recommended. I understand that you have a few transactions that qualify as business expenses. I'll share a way how you can record it in QuickBooks Online.

 

To do this, you can create a journal entry (JE) to document the business expense you paid with your personal funds.

 

Here's how:

 

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

 

After that, you can reimburse a personal expense through a check or an expense. I'll show you how.

 

Reimburse as a check:

 

  • Click + New.
  • Select Check
  • Choose a bank account to use to reimburse the personal funds.
  • In the Category column, select Partner's equity or Owner's equity.
  • Enter the amount to reimburse.
  • Once done, hit Save and close or Save and new.

 

Reimburse as an expense:

 

  1. Click + New.
  2. Select Expense.
  3. Select a bank account to use to reimburse the personal funds.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of the reimbursement.
  6. Once done, hit Save and close.

 

I've also added this article to guide you in recording personal expenses paid from business funds for future use: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

 

If you need further assistance handling your transactions in QuickBooks, let me know. I'll be around to help you.