Two Ways to Record Business Expenses Paid Personally in QuickBooks Online
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- čas přidán 12. 07. 2024
- In this QuickBooks tutorial, you'll learn two different ways to record business expenses that were paid personally.
In the first method, I'll show you how to enter the transactions as a Journal Entry in the Owner's Investment account. In the second method, we'll be using a Petty Cash bank account and entering the transactions as expenses.
Read the blog version with step-by-step instructions and screenshots at: www.gentlefrog.com/how-to-rec...
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Timestamps
00:00 - Intro
00:28 - Connecting your personal bank account to QB
00:38 - Method #1: Owner's Investment Journal Entry
02:15 - Method #2: Expense in a Petty Cash bank account
04:22 - Pros of using the Petty Cash expense method
05:25 - How to find transactions when using the Journal Entry method
06:54 - Outro
#quickbooksonline #bookkeeping
This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Gentle Frog, LLC does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Gentle Frog, LLC does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers and viewers should verify statements before relying on them.
Always helpful. Love the Gentle Frog
Thank you for the kind words! I'm so glad you find my videos helpful.
Okay for the first time since watching these CZcams videos, I have finally found the answer to my question with this video!!!! I bought stuff from Walmart and bought it with my personal card because my business didn't have the funds in it to buy the things I needed. I now know that I can create Walmart as a Vendor and search out everything purchased from that company!!!!! Thank you so much for this video!!
This makes me so happy! I'm so glad that you finally got your question answered. If you ever have a question that I haven't answered you can always let me know and I'll add it to the video queue.
Hi there! Great tutorial and explanation! Do you have any tips on uploading your personal expense receipts to these entries?
In the bottom left corner there's an "Attachments" block where you can import your receipts.
Ah thank god, an explanation. I was entering pre trading expenes in the journal to the owner's equity account & could not understand why the expense was not showing up in the expenses section in Quickbooks. Seems crazy to me!
I'm so glad it helped you! If you ever have a question about how to do something in QB feel free to ask.
Hello, great video! Better solution than the quickbooks support can give haha. I did have one question though, for the long solution would that still work for past expenses? I've been wanting to record the expenses but never knew the right way and didn't want to mess everything up. Thank you in advance for there reply!
Hi Steven, I would touch anything from previous years that you've paid taxes on. But anything from January 1st 2022 to now it'll work.
Do you have a video for when they pay Invoices and applying their payments to invoices. Can I use petty cash and then a journal entry to debit petty cash and credit Loan from Shareholder?
Hi Shannon, I'm not sure I understand the question. You can schedule a 15-minute meeting and we can go over what it is you're trying to do: www.gentlefrog.com/meeting/
Nice video. Question- what if you have a credit card expense and paid for it on your personal card. If you want to pay yourself back, do you categorize it as an expense and liability OR do I make a journal entry and make a new BANK line to pay from?
There are many different ways to do this. It could be an expense that you log as an owner investment which you later repay. It can be a credit card called "owner credit card" which is later repaid from the business. It can be a bill, or a bank account or a liability called money owed to owner.
Is the Owner’s Investment account the same as a Shareholder’s Loan account? I’m a new business owner that paid for a lot of things for my business using my personal funds, and I’m not sure if I should put it in Owner’s Investment or Shareholder’s Loan account. I do want those funds to be paid back to me within the initial year.
If you schedule a 15-minute meeting I can explain the differences and we can go over your transactions and decide what would be best for your business: gentlefrog.com/meeting
If I have a business Amex CC connected in bank feed and I made the monthly payment with my personal account how do i get the bank feed payment to match to the JE? When i make the JE from member investment it is increasing the CC balance but will match to payment. If I reverse the debit and credit it refuses to match.
It sounds like something may be incorrect with the imported transactions. You can schedule a 15-minute meeting and we can take a look at it together and get it straightened out: www.gentlefrog.com/meeting/
Hi Rachel. This is very helpful but I am an accounting idiot. How do I eventually show that I got my money back from the business. I have tried to use journal entries to do this, but in variably, I mess up another account in the process.
You can schedule a 15-minute meeting and we can look at it together and find a way that works for you: www.gentlefrog.com/meeting/
How would I pay for something personally and make it a loan to the business instead of an owner investment?
There are a lot of options but the easiest is to enter it as a bill.
If you have questions about specific instances of things you've paid for personally you can schedule a 15-minute meeting and we can take a look at it together and figure out what will work best for you: www.gentlefrog.com/meeting/