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March 14, 2023
Question

Ive been buying things such as fuel , tyres , servicing , phone bills etc from my personal bank and dont know how to categories the receipts / invoices on quickbooks

  • March 14, 2023
  • 1 reply
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i know i can claim tax relief on things such as phone bills and so much for mortoring costs but i dont know how to do this in quick books as they were all purchased on my personal bank card and not the business account , has any one got any advice for me

1 reply

March 14, 2023

Hello there, @aawoodworx1.

 

I'll make sure you record the business expenses you purchased on your personal bank card to keep your financial data accurate in QuickBooks Online (QBO).

 

We don't recommend mixing business and personal funds, but we can't avoid it sometimes. To record these transactions in QBO, you'll first have to create a journal entry, and then you need to decide how you want to reimburse the money (either by writing a cheque or recording an expense transaction). Before doing so, I encourage you to consult your accountant. They may have specific instructions for the debits and credits to use, reminders in claiming tax relief, and provide expert advice tailored to your business needs.

 

Whenever you're ready to create a journal entry to record the business expense you paid for with personal funds, follow these steps:

 

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

 

Once done, you'll have to decide whether to reimburse the money by writing a cheque or entering an expense transaction.

 

Also, when you use a business account to pay for a personal expense, you should record it in QuickBooks. You may check out this article if you want to learn more about this process in QBO: Pay for personal expenses from a business credit card or bank account.

 

Please feel free to leave a comment below if you have other concerns about managing business expenses in QBO. I'm always ready to help. Take care, @aawoodworx1.