Hello,
I have business expenses that were paid with a personal credit card before opening a business credit card.
The expenses were paid with personal cash that was not in the business checking account.
How do I record payment of these expenses?
I called quickbooks customer support and they want to have me enter the expenses under a new credit card that falls under current liabilities...
elec"I called quickbooks customer support and they want to have me enter the expenses under a new credit card that falls under current liabilities..."
TRUE, it falls under current liabilities. Just ignore that QB support advice.
If you've QuickBooks Online, you can do all the work on Excel spreadsheet and then import into QBO Banking. It's fairly simple task if you're familiar with Excel.
1) In QuickBooks, open Cash account as Banking Type
2) On the spreadsheet, itemize all business related expenses only. QBO fields take up to four payments but in your case just need three columns.
Column 1 = Date
Column 2 = Description (tags like vendor/account category)
Column 3 = Expense amount
Be sure to save as .CSV file.
3) From left dashboard, go to Banking > select Cash account (the new account you created) > select FILE UPLOAD at the top right corner > follow the instructions.
4) Once it's uploaded, you will see it under FOR REVIEW tab, choose Payee and categorize account, and then the ADD each transaction. It will be in QuickBooks register.
5) Since you're adding expenses to Cash account, the balance will show as negative or credit balance. You can two options to clear the balance. a) write a business check and apply to the cash account b) transfer the whole amount to owners' equity account (if sole proprietor type business). Either way, you would want to clear the balance and make account inactive.
Hope this helps!
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