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A
ADDRAC
March 24, 2024
Question

Expenses

  • March 24, 2024
  • 1 reply
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If I paid business expenses with a personal checking account prior to opening my business and QuickBooks checking accounts, how do I log those expenses without linking the personal checking account to QuickBooks? I'm specifically trying to account for the cost of starting the business (website, domain, mailing service, insurance, business laptop, state filing fees, attorney fees, tax advisor fees, etc.) that were all paid through a personal checking account that I'd rather not link to QuickBooks. 

1 reply

I
Ivan_G
March 24, 2024

Hello there, ADDRAC. I'm glad to help you record your business expenses, paid with personal funds in QuickBooks Online (QBO).

 

Beforehand, you can consult your accountant for appropriate advice and guidance on entering this transaction in QuickBooks.

 

Going back, we'll have to record your expenses by entering them on Journal Entry. You can put the overall expense amount. Then, reimburse it as a check or expense transaction to record them accurately in QuickBooks.

 

Here's how:

 

  1. Go to the + New menu, then select Journal entry.
  2. On the first line, choose an expense account for the said transaction. Then, enter the amount in the Debits column.
  3. On the second line, select Partner's equity or Owner's equity.
  4. Enter the exact purchase amount in the Credits column.
  5. Hit Save and close.

 

For the reimbursement, you have two options to record it. You can enter it as an expense or record it as a check. Doing so makes the data visible as business expenses on your financial reports.

 

To record the reimbursement as an expense, here are the steps:

 

  1. Go to the + New menu, then click Check.
  2. Reimburse the amount used by selecting a bank account or your business account.
  3. On the Category menu, click Partner's equity or Owner's equity.
  4. Enter the accurate total amount. Then, hit Save and close.

 

Meanwhile, here's how to enter the reimbursement as a check.

 

  1. On the + New menu, select Expense.
  2. Reimburse the amount used by choosing a bank account or your business account.
  3. On the Category menu, click Partner's equity or Owner's equity.
  4. Enter the accurate total amount. Then, hit Save and close.

 

In addition, I'll add this article that can guide you on tracking and modifying your expenses in QBO: Enter and manage expenses in QuickBooks Online.

 

Please don't hesitate to comment below if you have more questions about entering your expenses in QuickBooks. We're always available to assist you.

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