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Amy H22
January 10, 2025
Question

Reconciling income and expenses from before I had my business bank account so I can close my 2024 books.

  • January 10, 2025
  • 1 reply
  • 0 views

When my son in law started his LLC in February he didn't have a checking account. So he just used his personal credit card and the checks he was receiving as payment for services to pay for expenses. This was from February to August 2024. I manually entered the Invoices and Purchases into Quickbooks so that he could pay accurate Sales Tax. In September he opened a business checking account and linked it to Quickbooks. On the Balance Sheet and Income Statement (Profit and Loss) this Income that was used to keep his business going is showing as "Other Current Assets" as tho he still retains it, but he doesn't, its been used for expenses for the business. The months that have the checking account linked are showing up correctly. How do I reconcile this in Quickbooks correctly so I can close his books for 2024?

 

Thank you in advance for you help.

1 reply

J
JanbonN
January 10, 2025

We appreciate the details you've shared, Amy. I'm here to help you successfully reconcile and close your books for 2024.

 

To begin, we don’t recommend mixing business and personal funds. To allocate these personal expenses to your business account, you’ll need to create a Journal Entry (JE) to reimburse the personal expense and then record it as a check or an expense. Collaborating with an accountant for this process can also provide you with added assurance and accuracy.

 

Here's how to record the business expense you paid for with personal funds:

 

  1. Go to + New and select Journal Entry.
  2. On the first line, choose the appropriate expense account for the purchase.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity.
  5. Enter the same purchase amount in the Credits column.
  6. Click Save and close.

 

Then, you can create a check or expense transaction to reimburse the money.

 

Please refer to this article for more details: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

 

After recording, you can then refer to these articles about reconciling and closing your books:

 

 

Additionally, you can run a reconciliation report to view the session's reconciliation.

 

Moreover, you can also elevate your financial journey by collaborating with our QuickBooks Live Expert Assisted team. These financial experts specialize in streamlining your processes and offering tailored advice to meet the unique needs of your business.

 

If you need further assistance with closing your books or reconciling your account, please don’t hesitate to return to this thread, Amy. We're always here to help you in any way we can.

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