How to record short-term loan to business owner?

Hello JCDNS,

I'm glad to hear that you were able to purchase the car you wanted! I can see how this has caused a bit of confusion about how you'd record this in your business's books though since you used business funds for this personal expense. Not to worry, I have an idea of how you can go about recording this in QuickBooks Online.

Although it's not typically recommended, we at QuickBooks know that sometimes business and personal funds get mixed for a variety of reasons. For those situations, we have a couple of articles that can help. The one that you may be able to use for your situation is the following: Pay for personal expenses from a business credit card or bank account. This article walks you through recording the initial money-out transaction from the appropriate cash, bank, or credit card account, and then the money-in transaction when the amount is repaid.

Give that a read-through and see if that works for you. If you're not sure, please consult an accountant. They have the know-how to back up advice in these situations and can explain any impacts this sort of transaction will have for your books.

An accountant can even work with you directly in QuickBooks Online. The My Accountant tab gives you the option to invite your accountant on as a user. If you don't have an accountant just yet, use the Find a pro to help button from that tab instead to see our directory of QuickBooks-certified accountants in your area.

I hope this has helped, and I wish you the best moving forward with your books!

Hello,

You can record it as a journal entry. 

Money out of the business: Debit: Shareholder loan, Credit Bank

Money back in the business: Debit Bank, Credit Shareholder loan

Thanks

Prachi