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Kevin_summers
September 30, 2022
Question

Equipment purchase

  • September 30, 2022
  • 2 replies
  • 0 views

Hi, I'm new to QuickBooks and I've searched the help section with no luck. I bought a tool for my business out of personal money by mistake it should of gone onto the business account. How do I rectify this mistake? How do I declare this asset to the business to recoup the cost. I'm not sure where I'm supposed to enter this asset. Most articles state to add it as a fixed asset or to add a journal entry. I'm.a but confused.

 

2 replies

AlcaeusF
AlcaeusF
October 1, 2022

Hi there, @Kevin_summers.

 

I'm here to share information about entering your equipment purchase in QuickBooks Online (QBO).

 

To set up an asset, please follow these steps:

 

  1. In QBO, go to the Gear Icon at the top right.
  2. Under Your Company, choose Chart of Accounts.
  3. On the top right, click New.
  4. Under the Account type, select either  Tangible Asset.
  5. Select the detail type that best describes the asset, then Next.
  6. Name the account.
  7. If you mark the Track depreciation of this asset box, the system will automatically create a Depreciation sub-account for the item.
  8. Fill in the original cost fields.
  9. Hit Save and Close.

 

For more information about setting up and managing asset accounts in QBO, consider checking out this article: Set up an asset account in QuickBooks Online.

 

On the other hand, you can create a journal entry to record the business asset. Please refer to this article and follow Step 1 for further guidance: Pay for business expenses.

 

However, since you mentioned purchase should be taken out of your business account, I'd suggest consulting your accountant for assistance. They can help choose the appropriate account to use to ensure that your books are accurate.

 

For more tips and other resources you can use in the future, I recommend visiting our website: Self-help articles.

 

Let me know if you have follow-up questions about this or anything else in the comment section below. I'm more than willing to help. Take care always.

E
emmam6
March 7, 2024

Hello Community users, we just wanted to drop in and update this thread. In Simple Start you will be able to set up a Tangible asset for equipment purchased for the business. Instead of recording a bill you can record an expense.

 

You can then follow this article on how to record paying for business expenses using personal funds and then how to record the reimbursement of those funds. You may wish to confirm with an accountant that they are happy with the transactions you record.

 

Any questions at all or if you would like more detail let us know we'd be happy to help.

paul72
paul72
October 1, 2022

Hi @Kevin_summers 

 

As far as QBO is concerned, enter the purchase as a Bill as normal - use Account type > Fixed Asset as above if you want to track the value / depreciation.  If it's a low-value tool with a short lifespan (a year or two) there's no real need to do this - just enter as a normal expense.

 

Enter Bill Payment as normal - as far as QBO is concerned the business has paid the supplier (there's no real need to complicate things).  Maybe add a note to the transaction so that you remember what you did if anyone checks up.

 

Reimburse personal bank account from business account.  Reconcile the bank payment against the bill payment.

 

Hope this helps.

    K
    Kevin_summersAuthor
    October 2, 2022

    Thanks for the replys,

     

    They are very helpful. Unfortunately I'm on QuickBooks starter and these options for bills and fixed assets are not available to me in this edition. Since I'm a new startup I didn't need essentials. Is there any other way of doing what I'm asking without upgrading?

     

    /Kevin

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