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kimmarie122
October 16, 2018
Solved

How do i categorize a personal purchase on a business credit card?

  • October 16, 2018
  • 2 replies
  • 0 views

I understand i should not mix personal and business accounts. I plan on rectifying this in the future. I am a sole proprietor. I occasionally make personal purchases with the business credit card. I pay the business credit card with the business checking account. How do i categorize the personal purchase? Should i exclude the personal transaction? I just set up an owners equity draw account. Do i add it to owners draw account or transfer it to owners draw account? Is there a difference between adding it or transferring it? 


    Best answer by Raywhite28

    It's an owners draw.

    It shouldn't matter.

    2 replies

    Raywhite28
    Raywhite28Answer
    October 16, 2018

    It's an owners draw.

    It shouldn't matter.

    L
    LKramer82
    October 16, 2018
    I don't see owners draw.. I just see owners investment, and owners pay & personal expense...
    M
    Miguel Alva
    May 6, 2021

    Where you able to figure this out? 

    I just upgraded to QB online from self employed.  I'm also having a hard time categorizing a personal expense on a business cc and paying the cc from a business checking account. 

    M
    Mich_S
    May 6, 2021

    We thank you for choosing QuickBooks, @Miguel Alva.

     

    Allow me to help you categorize a transaction in your account.

     

    You should record in QuickBooks whenever you use a business account to pay for a personal expense. Then you can reimburse the company.

     

    Here's how you can record a personal expense:

     

    1. Select + New.
    2. Choose Check or Expense.
    3. Select a Payee from the drop-down ▼.
    4. Select the Account you used to make the purchase.
    5. Select the tax category that fits your need.
    6. Enter the Amount.
    7. Select Save and close or Save and new.

    Please review this article for the detailed steps: Pay for personal expenses from a business credit card or bank account.

     

    Just leave a comment if you have further questions. Have a nice day!

    P
    paulboth
    October 28, 2021

    I understand all of this, but how do I handle it if I pay the personal expense on the credit card with my personal bank account. I don't have my personal checking account in Quickbooks and from what I understand, I shouldn't..

    Thanks for any help on this

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