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sarahgress01
June 24, 2019
Question

How to record business expenses paid with a personal funds

  • June 24, 2019
  • 1 reply
  • 0 views

Hi

I am relatively new to Quickbooks Online.

 

I currently pay my Virgin Media bill (Broadband and Phone) from my Personal current account.  These services are used for both Personal and Business use, I then put a percentage through as Business expense.

Am I correct in thinking I need to add this as a Journal entry with a debit on Line 1 for the business proportion and a credit on Line 2 for the same amount to show under Owners Equity?

Do I need to physically reimburse my Private bank account, I don't need to be reimbursed.  Can I leave it at that?  Thank you.

1 reply

G
GeorgiaC
June 24, 2019

Hi sarahgress01,

 

 

Do you reimburse your personal account with funds from the business account?

 

If so you would record this percentage amount using an expense transaction, on the expense select the business bank account under 'Payment account' and enter an expense account on the Category drop-down.

 

 

Thanks!

S
sarahgress01Author
June 25, 2019

Thanks for your reply.

 

No, I don't reimburse my private bank account, so in this case, am I OK just to do a Journal entry for a debit against the Telephone account and then a credit against Owners Equity?

 

If ever I wanted to reimburse my private account, would I do the Journal entry and then the expense transaction as per your instrutions below?

Many thanks.

T
TaliaI
June 25, 2019

Hello,

 

We would advise the best way to record this is to record only the business percentage amount of the transaction - i.e. enter an expense for this amount only, as you do not need to record the personal side of the transaction. If you do want to record this as a journal entry, we would ask for you to speak to an accountant as we are not able to advise which categories to use within a journal entry without being trained in accountancy.

 

The expense would be the most simple way to record this, as suggested by my colleague above.

 

Thanks,

 

Talia

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