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leightylandscapingMT
Mar 11, 2021 6:49 PM UTC
Solved

How do I handle a personal credit card that has a business expense included?

Hello,

When I started my business I purchased a piece of equipment (fixed asset) that was paid using a personal credit card, then later transferred part of the balance owed to a business credit card and part of the balance to a personal credit card.  What is the best way to allocate those balance transfers in Quickbooks.  I still owe on the equipment; however the balances still exist on those 2 cards (persona/business).  The expense for the equipment already exists in Quickbooks online, I am just not sure if it is reflected correctly.

 

Thanks.

Charies_MAnswer
Mar 11, 2021 9:13 PM UTC

Thanks for making it here, leightylandscapingMT.

 

You'll want to record the business expense you paid for with personal funds as Journal Entry in QuickBooks Online (QBO). However, I'd still suggest consulting an accountant for more expert advice.

 

Here's how:

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

Then, you decide how you want to reimburse the money. Use either a Check or Expense.

 

You may find this article helpful for more information on how to handle a personal credit card that has a business expense: Pay for business expenses with personal funds.

 

To help you with future tasks and tips when using QBO, you might want to visit our Help Articles.

 

Keep in touch if you need any more assistance with managing personal credit cards with the business expenses, or there's something else I can do for you. I've got your back. Have a good day.

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3 replies

Charies_MAnswer
Mar 11, 2021 9:13 PM UTC

Thanks for making it here, leightylandscapingMT.

 

You'll want to record the business expense you paid for with personal funds as Journal Entry in QuickBooks Online (QBO). However, I'd still suggest consulting an accountant for more expert advice.

 

Here's how:

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

Then, you decide how you want to reimburse the money. Use either a Check or Expense.

 

You may find this article helpful for more information on how to handle a personal credit card that has a business expense: Pay for business expenses with personal funds.

 

To help you with future tasks and tips when using QBO, you might want to visit our Help Articles.

 

Keep in touch if you need any more assistance with managing personal credit cards with the business expenses, or there's something else I can do for you. I've got your back. Have a good day.

Charies_M
Mar 12, 2021 9:38 PM UTC

Hi, leightylandscapingMT.


Hope you’re doing great. I wanted to see how everything is going about handling a personal credit card that has a business expense included. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at any time.


Looking forward to your reply. Have a pleasant day ahead!

leightylandscapingMTAuthor
Mar 13, 2021 8:51 PM UTC

Hello,

I was told by Max Knight at Quickbooks Support that the level of this issue needs to be resolved by the Quickbooks support accounting team, which requires a subscription.

 

Thank you,

 

 

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