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Oct 19, 2018 8:11 PM UTC
Solved

I paid business expenses using a personal credit card before I had revenue coming in through the business. How can I reimburse myself or pay those expenses?

Is there a way to pay all business expenses from my personal credit card?

Rustler
RustlerAnswer
Oct 19, 2018 8:11 PM UTC

There are several ways to do paying business expenses from personal funds, this is one I prefer

1. Create a dummy bank account called owners, use write checks (do not print them, they are just a form for entering transactions) on that account to enter and pay the bills/expenses.

2. When you are finished, the balance will be negative, make a deposit for the total amount and in the account block select

for a sole proprietor - owner equity, or better owner equity investment (technically you can not borrow from yourself, if you want to be paid back you use equity drawing for that payment)
for a c- or s-corp  - create a current liability account named due-from=[name] and use that
for a partnership - owner investment OR the liability account like the corporation


23 replies

Rustler
RustlerAnswer
Oct 19, 2018 8:11 PM UTC

There are several ways to do paying business expenses from personal funds, this is one I prefer

1. Create a dummy bank account called owners, use write checks (do not print them, they are just a form for entering transactions) on that account to enter and pay the bills/expenses.

2. When you are finished, the balance will be negative, make a deposit for the total amount and in the account block select

for a sole proprietor - owner equity, or better owner equity investment (technically you can not borrow from yourself, if you want to be paid back you use equity drawing for that payment)
for a c- or s-corp  - create a current liability account named due-from=[name] and use that
for a partnership - owner investment OR the liability account like the corporation


Oct 19, 2018 8:11 PM UTC
How do you create a "dummy" bank account when QB makes you connect everything?