How to record credit card payment with personal funds. Do I record the personal funds into owner contribution (cr) and the credit card account (dr).

As a brand new business owner, there were several things I had to purchase with my personal funds/credit card because I did not yet have a business card. For example, the fee to the state department of commerce for the business registration. I don't want to commingle, but I had no other way to pay for purchases prior to setting up my business account. Would I follow this same advice you gave: Enter a Credit Card "return/refund" and the Expense reason is Owner Contribution. You don't need Debit-Credit. 

I have a related question - very old problem that persists and I can't find answer in forum.   When my owner buys things with his own money, I enter a JE with a credit to his equity account and a debit to the expense.  I enter the vendor name under NAME in the JE.  I cannot find a report that will show me all of the true vendor payments made out of company funds along with this journal entry.  Seems the vendor reports don't look at JEs.  Please, if you can help me I'd be very grateful.  Reports are very misleading without the JEs showing up.  Will this be fixed please in a future version?  We use the desktop PRO 2019 version.

Hello FrankPeterson!

There's a better way to record the business expenses paid with personal funds. Let me explain.

You can record the business expense paid with personal funds using a journal entry. Select the expense account for the purchase and enter the amount in the Debits column. On the second line, select Partner's equity or Owner's equity and the same amount on the Credits column. Then, tap Save and close.

Once done, you can simply create a check or expense transaction to record the reimbursement. Go to the + New button and select any of them. Just make sure to select partner's equity or owner's equity on the Category details section, then enter the amount. Select Save and close.

With regards to the transactions paid by the suspense account, you can delete them and follow the steps I shared instead. However, it's best that you discuss this first with your accountant to see what's best for your business.

I've added some links you can check. These will show you how to link your credit card account and categorize downloaded transactions, as well as how to handle a personal expense in a business account:

• Connect bank and credit card accounts to QuickBooks Online

• Categorize and match online bank transactions in QuickBooks Online

• Pay for personal expenses from a business credit card or bank account

Keep on posting here and we'll help you. Take care always!

Thanks for joining us here, @RMcLaen.

I share the steps on how you can record the payment in QuickBooks. You'll have to make the expense billable. This way, you'll be able to record the customer payment and reconcile. Here's how:

First, go back to your expense transaction and make sure to mark it as billable. See the image below of what it looks like.

Next, create an invoice for the customer and apply the billable expense (above picture).

1. Go to the Home Page, then select Create Invoices menu.
2. Pick the customer's name from the drop-down and add the billable expense.
3. Tap Save.
4. From the invoice, click the Receive Payments menu at the top.
5. Review the Customer Payment details.
6. Click Save & Close.

With the above steps, you're able to record the customer paid expense and reconcile your credit card account.

Here are the links that'll guide you through the process.

• Add and match Bank Feed transactions in QuickBooks Desktop

• Reconcile an account in QuickBooks Desktop

Please don't hesitate to leave a reply anytime if you have other questions or concerns with customer expenses. I'll be around for you. Take care and have a great rest of the week.

I'm here to guide you in entering that transaction, Suz333.

You can create a journal entry using the Owner's Equity account to record the payment of the business credit card. Here's how:

1. Go to the Company menu.
2. Select Make General Journal Entries.
3. Pick the appropriate expense account in the first line under the Account column.
4. In the Debit column, enter the amount of the payment.
5. You can select the customer from the Name drop-down.
6. Choose Owner’s Equity or Owner Investment in the second line under the Account column.
7. Click Save and Close.

Alternatively, you can create a cash clearing account and record payment of the business credit card to this bank account. After that, enter record a deposit to this false bank account, equal to the payment, posted from the Owner's Equity account. If the owner wished to be repaid,  you can post the said payment against the Owner's Draw account.

To learn more about recording expenses paid by the owner's funds, feel free to read this article: Pay for business expenses with personal funds.

Let me know in the comment section if you have any other concerns or further questions. I'll be around to help.