Skip to main content
C
CBlock
October 17, 2023
Solved

Paying down business CC personal expenses.

  • October 17, 2023
  • 1 reply
  • 0 views

Hi I need advice, I’ve been using my business CC for personal expenses, I’ve been categorizing the business expenses on the card as usual on QB and haven’t categorized the personal ones yet (should I just put it on default “Owners Personal Expenses”?

Also I have been paying down all personal expense amount on the card with my Personal Bank Account, so it shows on QB as a payment but it makes me link a bank for the payment source, should I just go ahead and link my personal account? 

 

Best answer by Rainflurry

@CBlock 

 

Exclude all of the personal transactions - both the charges and the payment.  Neither belongs in your business books.  The only time personal transactions should be booked to an equity account is if you pay for your personal expenses using funds from the business account.  Since you aren't doing that, exclude them and just record the business-related charges and payment.  

1 reply

S
ShyMae
October 17, 2023

Welcome to the Community space, @CBlock .


As a best practice, it's recommended to keep your personal and business expenses separate. While it's not advisable to mix personal and business funds, there might be some situations where you need to use your business account for personal use.
 

We can record your personal expenses when you use a business account. However, we recommend you consult and seek your accountant's advice to determine the appropriate category for your personal expenses. 

 

Once you have the information where this should be categorized, you can follow these steps to record your expenses:

 

  1. Go to + New.
  2. Select Check or Expense.
  3. Select a Payee from the dropdown menu.
  4. Select the Bank Account, Cash Account, or Credit Card you used to make the purchase.
  5. From the Category dropdown, select the category suggested by your accountant. 
  6. Enter the Amount of the purchase.
  7. Click Save and close.

 

Furthermore, since your personal expenses were paid using your personal bank account, you can exclude them from QBO. There's no need to link your personal account as it's not considered part of your business transactions.

 

Check out these articles to help you manage your transactions in QBO: 

 

Please don't hesitate to reach us if you have further questions about your transaction in QBO. We're always here to assist you. Keep safe!

C
CBlockAuthor
October 17, 2023

Thank you very much for the prompt response.

Can I get one more input.. 

So here is what I’ve done - I added the CC personal expenses to Owners Personal (Equity)


Now on the qb Credit Card feed.. the transaction shows the cc payment that was paid via my personal bank, how do I categorize it to that same Equity account to 0 it out? Or do I exclude it? 

 

Terms & ConditionsAccessibility statement