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T
travelqueen
October 10, 2023
Question

Record and categorize business credit card payment paid from a personal savings account or personal credit card balance transfer

  • October 10, 2023
  • 1 reply
  • 0 views

Since the pandemic, I've made a mess of my business accounting, and I need help categorizing business debt payments that have been paid with personal accounts/funds.  I've outlines my scenarios below.  

 

3 Scenarios

  1. Paid business credit card from a personal savings account.  How should this get categorized in QB Online.  I do not have my personal savings connected with QB.
  2. Paid business credit card from a personal credit card via a balance transfer.  No other purchases are made on the personal card and interest has accured on the personal credit card. 
  3. Paid business credit card by taking out a personal loan.  The loan payments are being made from personal checking account, not the business account.

 

Based on the 3 above scenarios, I need help understanding how to categorize these payments.  I'm not sure if these are personal expenses based on this video.

 

If anyone can assist me with these 3 scenarios, that will be so helpful.  I haven't created many journal entries, but I'm comfortable with the principles to make this right.

 

Thank you for your support.

1 reply

M
Mark_AG
October 10, 2023

Hello there, @travelqueen.

 

I see that you are trying to use personal funds to pay business expenses. It's best to keep personal and business accounts separate to avoid confusion. No worries, I can provide you with the solution to pay for business expenses with personal funds since this has been made already. A manual journal entry is required to record these transactions regardless of payment method. However, it's best to consult your accountant to ensure proper debiting/crediting to accounts using this method.

 

Here's how:

 

  1. Go to +New button on the left menu.
  2. Select Journal Entry under the Other.
  3. Select the expense account for the purchase on the first line.
  4. Enter the purchase amount in the Debits column.
  5. On the following line, select Partner's equity or Owner's equity.
  6. In the Credits column, enter the same purchase amount.
  7. Select Save and Close.

 

I'd like to provide you with these resources to help you reconcile the account in QuickBooks Online:

 

 

Feel free to reply to this post for assistance with recording personal funds and reconciling accounts in QuickBooks. I'd be glad to assist you. Have a great day!

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