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May 24, 2021
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I just started a company and just opened up QuickBooks. I don't have business account yet. How should I include my expenses from my personal account into my company?

  • May 24, 2021
  • 1 reply
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Best answer by Mark_R

Your confusion ends here, @HungryAlienW.

 

Allow me to fill you in on everything you need to know about using a personal account in a business transaction.

 

In QuickBooks Online (QBO), we don't advise mixing your personal and business funds. It's a good business practice to avoid mixing both expenditures, and opening a business checking account is one of the first things to do when starting a new business.

 

If you want to record the expenses you paid with your personal funds, you can create a journal entry for it. Here's how:

 

  1. Sign in to your QBO account.
  2. Click the + New button, then select Journal Entry.
  3. On the first line, select the expense account for the purchase. Then, enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity. Then, enter the same purchase amount in the Credits column.
  5. Click Save and close.

 

Once done, you can reimburse the money when you already have your business account. Let me guide you how.

 

  1. Click the + New button, then select Check or Expense.
  2. Select a bank account to use to reimburse the personal funds.
  3. In the category column, select partner's equity or owner's equity.
  4. Enter the amount of the reimbursement.
  5. Click Save and close.

 

I'm adding this article for more details: Pay for business expenses with personal funds.

 

You might also want to check out this article here to learn more about how to get started with QuickBooks Online (QBO).

 

Keep in touch if you need any more assistance managing transactions in QuickBooks Online. I've got your back. Have a good day.

1 reply

Mark_RAnswer
May 24, 2021

Your confusion ends here, @HungryAlienW.

 

Allow me to fill you in on everything you need to know about using a personal account in a business transaction.

 

In QuickBooks Online (QBO), we don't advise mixing your personal and business funds. It's a good business practice to avoid mixing both expenditures, and opening a business checking account is one of the first things to do when starting a new business.

 

If you want to record the expenses you paid with your personal funds, you can create a journal entry for it. Here's how:

 

  1. Sign in to your QBO account.
  2. Click the + New button, then select Journal Entry.
  3. On the first line, select the expense account for the purchase. Then, enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity. Then, enter the same purchase amount in the Credits column.
  5. Click Save and close.

 

Once done, you can reimburse the money when you already have your business account. Let me guide you how.

 

  1. Click the + New button, then select Check or Expense.
  2. Select a bank account to use to reimburse the personal funds.
  3. In the category column, select partner's equity or owner's equity.
  4. Enter the amount of the reimbursement.
  5. Click Save and close.

 

I'm adding this article for more details: Pay for business expenses with personal funds.

 

You might also want to check out this article here to learn more about how to get started with QuickBooks Online (QBO).

 

Keep in touch if you need any more assistance managing transactions in QuickBooks Online. I've got your back. Have a good day.

May 24, 2021

Thank you! Wow, you are super fast and I like how you answered my questions exactly!