Reimbursing last year's expenses

Thank you for getting in touch with us, @skylane408. We understand that managing business expenses can be quite a challenging task, but we're here to help you out.

You can reimburse yourself for legitimate business expenses incurred in the past. This reimbursement process can be managed effectively using QuickBooks Online (QBO) to track and document the expenses for proper accounting and tax purposes. 

To record the business expense that you paid for with personal funds, here's how:

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

Next, you have two options to reimburse the money: either by check or by expense. To record the reimbursement as an expense, kindly follow these steps:

1. Select + New and click Expense.
2. Select a bank account to use to reimburse the personal funds.
3. Select Partner's equity or Owner's equity in the Category column and enter the amount of the reimbursement.
4. Hit Save and close.

To proceed with the option to record the reimbursement, you can visit this material for the detailed steps on how you want to record in QBO: Pay for business expenses with personal funds.

Moreover, to ensure that the reimbursements are handled correctly, I recommend reaching out to an accounting professional. This will help you ensure that your financial records are accurate and up-to-date, which is crucial for effective financial management.

If you don't currently have an accountant, you can visit our Proadvisor website to find one. Our QuickBooks advisors can offer you technical and accounting support.

Additionally, you can check these articles for more tips about handling personal and business expenses:

• Mixing Business and personal funds.
• Pay for personal expenses from a business credit card or bank account.

If you have further questions about reimbursements in QBO, please don't hesitate to reach out to us. The Community is always available to help you. Best regards.