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April 30, 2024
Question

Can anyone please tell me how (& where) as a sole trader, do I enter actual costs for household bills when paid from a personal account?

  • April 30, 2024
  • 1 reply
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I am a sole trader & need to include actual costs for some household bills such as Electricity  & Council Tax. I pay the bills monthly by direct debit from a personal account. Any advice would be much appreciated

1 reply

April 30, 2024

Let me help you record your actual costs for household bills in QuickBooks, @guccigirl0709.

 

Before we proceed, may I know if these household bills are part of your business expenses? If so, you can create a journal entry to record them in the system. Here's how:

 

  1. Select + New and click Journal Entry.
  2. On the first line, choose the expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Click Save and close.

 

If you want to reimburse the money, you can write a check. 

 

  1. Click + New.
  2. Select Check. Or if you're in the Business view, make sure to switch to the Accountant view first.
  3. Choose a bank account to use to reimburse the personal funds.
  4. In the Category column, select Partner's equity or Owner's equity.
  5. Enter the amount to reimburse.
  6. Click Save and close or Save and new.

 

If not, I'd suggest getting in touch with your accountant. They can provide you with proper guidance in recording your expenses in QuickBooks. This will help us ensure that you place the transaction in the correct account without affecting your book in the future.

 

In addition, you can run several reports in QuickBooks to get a snapshot of your business. This will help you review how much you've spent and the status of your sales.

 

If you have any questions or need guidance on this matter, please feel free to ask, and I'll provide you with the information and steps you need to record these expenses effectively.