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snow151
June 2, 2020
Question

looking for a step by step for recording business purchase with personal account in a sole-proprietorship

  • June 2, 2020
  • 1 reply
  • 0 views

We occasionally make business purchases with our personal debit or credit card. As a sole-proprietorship, what is the best way to record this in QB online and to match it to receipts? I have an owner's equity account with sub accounts for owner's draw and contribution. I think I should be using the owner's contribution but am not sure how to do this when creating the expense.

Thanks

1 reply

J
JamesM
June 2, 2020

Hi there,

 

I'm happy to learn you're advantage of the time-saving features which QuickBooks offers. I'd be glad to steer you in the right path with this. 

 

Making sure you're recording transactions the right way is a good exercise for preventing errors in your books. I recommend contacting an accounting professional to get more info on this. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any discrepancies on your account. 

 

I'll also leave this post here in the Community so that accounting professionals can chime in on this. In the meantime, feel free to ask other questions by leaving a comment below. I'm here to help. :) 

 

S
snow151Author
June 5, 2020

I've tried looking at other posts, but am not totally clear on the correct way to go. I have uploaded the receipt and am trying to review it. I wanted to put the Bank/Credit account as Owner's Contribution, but it will not let me. Is there a reason I cannot do it this way? 

I've read of creating a 'dummy' account and putting this as the Bank/Credit account. As well, it looks like I should be doing a journal entry to capture the expense being paid by personal funds. If I create a journal entry, am I also supposed to do an expense first?

I watched this video 'how to pay expenses w/owner funds in QuickBooks Online' which seemed pretty straight forward (https://quickbooks.intuit.com/learn-support/en-us/expense-accounts/pay-for-business-expenses-with-personal-funds/00/187979). However, when I try to do this, my expense page looks a little different and again is making me choose a payment account... this is where I am getting stuck.

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