Thanks for posting here in the Community, @EEHRC.
First off, I'd like to appreciate you for taking the time to explain your scenario in as much detail as possible. This way, I'll be able to address your concern appropriately.
To start, when recording an expense paid using personal funds, we should Debit the amount under the expense account and Credit it to Owner's equity.
Since you've already reimbursed yourself via bank transfer, let's go ahead and record the transaction. In reimbursing the money, you have two options, either as a check or as an expense.
To do this:
- Click on the + New icon, then select Check or Expense.
- Choose the bank you want to use to reimburse the personal funds.
- In the Category column, select Owner's equity.
- Enter the Amount to reimburse.
- When done, select Save and close.
Click on this article to learn more about handling business expenses with personal funds in QuickBooks Online: Pay for business expenses with personal funds.
To answer your questions regarding owner's equity and owner's draw, an owner's draw account is an equity account used to track withdrawals of the company's assets to pay an owner. When an owner withdraws funds from the company for personal use in QuickBooks Online, owner's equity is often converted to owner's draw. Because it is an owner's distribution, QuickBooks should record this as an owner's draw. It is recorded as a negative number in the owner's equity account, reducing the owner's equity balance.
Additionally, I've included an article that'll guide you in recording personal and business transactions to avoid mixing expenditures: Mixing business and personal funds in QuickBooks Online.
I'll be here if you need further assistance with regard to managing expenses in QBO. Take care and have a good one.
