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annkbell
January 19, 2024
Question

Owner paying back company

  • January 19, 2024
  • 1 reply
  • 0 views

I work for an company with 2 owners. One was accidentally paid a payroll that he is now paying back. However, he is not paying it back with payments. He tracks his time invoiced to clients and then subtracts what he owes from that balance then receives his reimbursements, payroll, etc.  How do I capture the company overhead payment and the repayment of payroll when no check has been written to the company. I am sure none of this is the way to do it. It's just the way they handle things. Please assist. 

 

Example:

Owner 2 works 15 hours @ $110/hr= $1650

- Owner Contribution to company overhead= $280

- Owner repayment of payroll in December= $110

- Owner Reimbersement= $500

- Owner Left for Payroll= $760

 

Total= $1650

1 reply

S
SarahannC
January 19, 2024

Hello there, annkbell.

I get what he's using to offset what they owe the company. It isn't the usual way to pay back money, but we can still make it work in the books.

To capture the company overhead payment and the repayment of payroll, you could create a journal entry to account for these transactions. 

 

When doing so, I highly recommend a professional accountant to ensure that these transactions will recorded accurately and in compliance with accounting standards.

 

  1. Go to the + New button and then select Journal entry.
  2. Choose the account you want to move money from or to, and enter the amount in the correct column (debit or credit).
  3. Select the other account involved and enter the same amount in the opposite column.
  4. Make sure the total credits and debits are the same to keep the accounts balanced.
  5. Add a note in the memo section to explain the journal entry.
  6. Finally, click on Save and close to finish.

 

Just add another post  if you have any more questions about recording stuff in QuickBooks Online. I'm here to help whenever I can.

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