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tonjunee
March 21, 2020
Solved

How do you record using a personal credit card for a business expense? Business hasn't paid back loan. The loan was paid off from my personal funds.

  • March 21, 2020
  • 2 replies
  • 0 views

Hi,

 

I'm new to QB and I started off with using credit cards to fund the business.

 

Since the business hasn't made any income yet, I had to pay off the credit card statement with my own personal funds to keep the business running.

 

How would I set this up in QB?

    Best answer by Rose-A

    Good day, tonjunee.

     

    Yes, it doesn't matter if you used cash, a personal credit card, or a check. As referenced by my peer above, you will need to manually create a journal entry to record these transactions.

     

    However, using this method (journal entry) needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit. This is to ensure your checking account will not go off.

     

    After that, you can follow the rest of the steps provided in the article. Once done, you can take a look at these resources to help you reconcile the account in QuickBooks Online:

     

    You can get directly in touch with me if you have additional questions with recording personal funds and reconciling an account in QuickBooks. I'd be glad to help.

    2 replies

    M
    mazar
    March 21, 2020

    Hello,

     

    Here is an article about that.

    https://quickbooks.intuit.com/learn-support/en-us/expense-accounts/pay-for-business-expenses-with-personal-funds/00/187979

    T
    tonjuneeAuthor
    March 22, 2020

    @ MarshallA

     

    I've watched the video, but that doesn't cover how to deal with credit card purchases. It goes off of checking account. It is paying from personal funds, but not credit cards. Or does it really matter?

     

    Also, when I go to pay for business expenses but use my funds to pay off the credit card statement at a later date, how do I reconcile everything?

    Rose-A
    Rose-AAnswer
    March 22, 2020

    Good day, tonjunee.

     

    Yes, it doesn't matter if you used cash, a personal credit card, or a check. As referenced by my peer above, you will need to manually create a journal entry to record these transactions.

     

    However, using this method (journal entry) needs the assistance of an accounting professional for the accounts you need to use. Also, your accountant can help and guide on which account to debit and credit. This is to ensure your checking account will not go off.

     

    After that, you can follow the rest of the steps provided in the article. Once done, you can take a look at these resources to help you reconcile the account in QuickBooks Online:

     

    You can get directly in touch with me if you have additional questions with recording personal funds and reconciling an account in QuickBooks. I'd be glad to help.

      C
      CB Venture
      January 15, 2024

      My question is: How do I categorize reimbursement to my personal credit card on my business bank account? Basically I used my personal card for business expenses then paid it bank using funds from my business account. I have categorized it on my personal credit card as a business expense in QuickBooks but how do I categorize it in QuickBooks in my business bank account?

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