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buckeye44837
May 17, 2022
Question

Paid Personal Credit Card Payment With Business Checking Account

  • May 17, 2022
  • 1 reply
  • 0 views

I made the mistake of making (2) credit card payments to my Personal Credit card account from my Business Checking account to cover money that I had injected in my business over the past year. I realize this was not a very good way to go about this after the fact but need help with how to log this correctly. 

 

The credit card payments do not match up to a certain expense but are more of general amount to cover a portion of the money that I injected throughout the year. 

 

Any help on this is greatly appreciated.

1 reply

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Giovann_G
May 17, 2022

Welcome back, buckeye44837.

 

I understand you need help recording payments to your credit card from your business checking account. I'll share a way to do this.

 

Although mixing business and personal interactions isn't advisable, we all know it happens. You'll have two options to record the payments in QuickBooks Online. I'll show you how.

 

Option 1: Record it as a check.

 

  1. Click the + New icon.
  2. Select Check.
  3. Choose your business checking account to pay your credit card.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of your payment.
  6. Once done, hit Save and close or Save and new.

 

Option 2: Record it as an expense.

 

  1. Click the + New icon.
  2. Select Expense.
  3. Choose your business checking account to pay your credit card.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount of your payment.
  6. Once done, hit Save and close.

 

In addition, I've included this article about running reports if you want to see the different aspects of your business: Run reports in QuickBooks Online.

 

Reply to this post if you need further assistance recording personal credit card payments. We'll always make sure to get back to you. Stay safe.

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buckeye44837Author
May 17, 2022

I don't have the option to select Partner's equity or Owner's equity in the Category Field.

 

I do have Owner Draws and Owner Investments that both list the detail type as "Owners Equity". Is this what I should select if I want to file as an expense ?

M
mv32
May 18, 2022

Thanks for your prompt response, @buckeye44837.

 

I'll add some clarifications about the process with expenses you made with personal funds.

 

You'll have to create a journal entry to record the business you paid for with personal funds.

 

Yes, you're correct, but you can pick the Owner's Investment as the Owner Equity account when you want to file it as an expense. However, if you'll have to use another account to track the expenditure, I suggest consulting your accountant for professional advice.

 

In addition, you can reference this video article for the complete steps: Pay for business expenses with personal funds. This covers from the first step by recording a journal to the last step, on how to reimburse.

 

Once you're ready, you can run your financial reports to see the data.

 

Please let me know if you have more questions about recording transactions in QuickBooks. We're always here to assist you more. Stay safe.

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