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October 8, 2022
Question

So I just started this business and I am pulling money form my personal savings and putting it into my business checking account. How do I record that?

  • October 8, 2022
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1 reply

October 8, 2022

Hi @kamranford-thehi.

 

You can record a transfer if you're moving out the money from your personal savings and putting it into your business checking account.

 

However, if you're recording business expenses using personal accounts in QuickBooks Online. I'll share the steps with you. 

 

First, you can record the business expense you paid for with personal funds. Here's how:

 

  1. Click the + New button and select Journal entry.
  2. In the first line, set the expense account for the purchase.
  3. Enter the amount in the Debits column.
  4. Select Partner's equity or Owner's equity in the second line, then enter the exact purchase amount in the Credits column.
  5. Click Save and close.

 

Next, decide how you want to reimburse the fund. For the reimbursement, you have two options. You can either record a reimbursement as a check or create an expense. Here's how to create a check if you want to go it that way:

 

  1. Click the + New button and select Check
  2. Select a bank account to use to reimburse the personal funds.
  3. In the category column, select partner's equity or owner's equity.
  4. Enter the amount to reimburse.
  5. Select Save and close or Save and new.

 

You can also follow these steps if you want to record the reimbursement as an expense:

 

  1. Click the + New button and select Expense
  2. Select a bank account to use to reimburse the personal funds.
  3. In the category column, choose partner's equity or owner's equity.
  4. Enter the amount of the reimbursement.
  5. Select Save and close.

 

You can reference these relevant articles for additional guidance about this topic: 

 

 

Although, we would still recommend reaching out to your accountant for further advice on this matter. I'll be adding these articles in case you bump them into your future tasks:

 

 

Please leave a comment if you have more questions about recording transactions. I'm always available to help. Take care always.