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Bant Bitterwood
April 2, 2021
Solved

What is the best way to enter personal credit card and debit card purchases into quickbooks as a single owner LLC

  • April 2, 2021
  • 2 replies
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I am brand new to Quickbooks and bookkeeping in general. I opened an LLC a few months back. Before I was able to get a business bank account I have made several (maybe 30-40) purchases on 2 personal credit cards and a personal debit card for supplies. I have all the recipts. I have done nothing in Quickbooks yet but setup my milage and link my business bank account that I just opened. I know I need to keep business and personal expenses seperate. Do I need to put a deposit into quickbooks and pay myself back? If so do I have to pay myself intrest? What is the best way to do this? How do I go about doing these things in quickbooks and bring myself current so I can just use my business bank card from now on? I believe once I get passed this hump and once I have this quickbooks setup it would be loads easier, but this is Greek to me at the moment. Any and all help would be GREATLY appreciated, but please speak in layman terms a newbie can understand as that's what I am. Thank you.

    Best answer by Charies_M

    Thanks for sharing your concern in detail, Bant Bitterwood.

     

    I can guide you through the process of recording personal credit card and debit card purchases in QuickBooks Online (QBO).

     

    First, let's record the business expense you paid for with personal funds using a Journal Entry.

     

    Here's how:

    1. Go to the + New icon and click Journal Entry.
    2. On the first line, select the 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.

    Once done, you have the option to record the reimbursement as a Check or as an Expense. For the steps on how to create the said transactions, visit this article: Pay for business expenses with personal funds. This also serves as a complete guide on how to handle your situation.

     

    In case you want to review the entries made, you can pull up or print a report for Journal Entries.

     

    To do that:

    1. Go to the Search icon then choose Advanced Search.
    2. Filter your search to Journal Entries. Add additional filters such as Reference no., as necessary.
    3. Select Search, then choose the desired Journal Entry.
    4. Select More, then choose Transaction journal.
    5. To print, select the Print icon in the upper right of the report.

    If you have another question in mind, please let me know. I'd be happy to answer them for you. Have a good one.

    2 replies

    B
    Bant BitterwoodAuthor
    April 2, 2021

    Sorry, I menat a deposit into MY BUSINESS BANK ACCOUNT

    C
    Charies_MAnswer
    April 2, 2021

    Thanks for sharing your concern in detail, Bant Bitterwood.

     

    I can guide you through the process of recording personal credit card and debit card purchases in QuickBooks Online (QBO).

     

    First, let's record the business expense you paid for with personal funds using a Journal Entry.

     

    Here's how:

    1. Go to the + New icon and click Journal Entry.
    2. On the first line, select the 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.

    Once done, you have the option to record the reimbursement as a Check or as an Expense. For the steps on how to create the said transactions, visit this article: Pay for business expenses with personal funds. This also serves as a complete guide on how to handle your situation.

     

    In case you want to review the entries made, you can pull up or print a report for Journal Entries.

     

    To do that:

    1. Go to the Search icon then choose Advanced Search.
    2. Filter your search to Journal Entries. Add additional filters such as Reference no., as necessary.
    3. Select Search, then choose the desired Journal Entry.
    4. Select More, then choose Transaction journal.
    5. To print, select the Print icon in the upper right of the report.

    If you have another question in mind, please let me know. I'd be happy to answer them for you. Have a good one.

      B
      Bant BitterwoodAuthor
      April 2, 2021

      I'm sorry, but this comes nowhere close to answering my question as far as I understand. Why am I debiting the owners expense account and crediting it at the same time with the same ammount. This makes no since to me.

      R
      ReymondO
      April 2, 2021

      Good day, @Bant Bitterwood.

       

      The steps provided by my colleague above are specifically for recording a business expense you paid for with personal funds.

       

      Since part of its process is creating a journal entry, you have to select the expense account for the purchase on the first line. Then, enter the purchase amount in the Debits column. 

       

      On the other hand, you have to select Partner's equity or Owner's equity for the second line. Next, enter the same purchase amount in the Credits column.

       

      Doing these steps will transfer the money from an asset, liability, or equity account to an income or expense account.

       

      To better understand the types of accounts you use, you must reach out to your accountant. They are the ones who can explain further whether an account is increased with a debit or credit.

       

      To know more about this process, check out this article: The difference between debit and credit.

       

      Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. Take care and have a good one.

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