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iangude
February 9, 2021
Question

Items paid for Cash / From Personal Account

  • February 9, 2021
  • 1 reply
  • 0 views

Hi

 

I am just trying to work through a new client's books.  He's been on QB since Sep20, and he's finally passed me a load of receipts, which I'm now trying to piece together against what's come over from his Business Account into QBO.

 

I have 2 situations ;

 

- Items purchased using the business account that were not Business Items - ie personal items.  I'm ok with these, I've just put them in as Owner's Equity items.

- Receipts for items that he's paid for from his own money, cash, credit card etc, but doesn't particuarily need the money back.       However, they do want to be included in his accounts as business expenses.

 

How best to I deal with these ?  Input them as bills and leave them unpaid ?   I'm worried that this will then cause the balance in the bank -v- the balance in QB to not balance.  If I leave them as bills (in effect, unpaid) will they still show up in his end of year accounts ?

 

Thanks

1 reply

E
EmmaM
February 9, 2021

Hello Iangude, With you mentioning he does not particularly need the money back, so it is not really a loan to the business but wants to show the business expenses you have the option of creating separate cash at bank and in hand account for the expenses from the bank account that is his personal account, therefore it will keep track of what he has spent for the business if he ever changes his mind and wants to pay himself back and also will be separate so will not affect the main bank account balance. 

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