QB Issue Resolution:
I’m so glad you stopped in to ask me this today! Mixing business expenses with personal funds always makes me hinky because I know the IRS is really picky about that, but sometimes it’s a necessity! Luckily, it’s really easy to record paying for business items with your personal funds in QuickBooks Online, and I’m here to walk you through it! Here’s how!
- First, we’re going to create a Journal Entry by clicking the Create (+) at the top of your Home screen and choose Journal Entry.
- (Optional) Change the Date and enter a Journal No.
- For the first distribution line, we’re going to enter:
- Account: Expense account appropriate for the purchase.
- Debit: Amount of purchase.
- Name: If you want the expense associated with a customer, choose a customer. Otherwise, leave Name empty.
- On the second line, enter:
- Account: Owner’s equity or Partner equity. Owner’s equity is an accounting term that basically means “owner’s pocket.” It’s all your money that isn’t the business’ money, if that makes sense!
- Credit: The amount of the purchase. If you made other personal purchases at the same time, don’t include those costs. You only want to enter the business expense.
- You can enter a Memo, such as “Reimbursable,” so you can identify the transaction later.
- Click Save and Close when you’re done.
What about when you need to reimburse yourself? That’s really easy too! Here’s how if you wrote yourself a check:
- First, click the Create (+) at the top of your Home screen and choose Check.
- For the Bank Account, we’re going to choose the account we reimbursed ourselves from.
- The Payee will be your name!
- Amount will be the amount you are reimbursing yourself (obviously, LOL).
- The Account in the lower part of the screen is Owner’s or Partner’s Equity.
- For Customer, we are going to leave that blank, even if a customer’s name was used above in the Journal Entry.
- When you’re finished, just click Save and Close.
What if you took cash out of your Petty Cash, or something similar? That’s just as easy as the check! Here’s how to do THAT:
- Click the Create (+) and choose Expense from the dropdown.
- For Bank Account at the top of the screen, we’re going to choose the cash account we took the cash from.
- For Payee, that’s you!
- For Account, we’re going to use Owner’s or Partner’s Equity.
- Amount is going to be the amount you’re taking from the company.
- Leave the Customer field blank, even if you used a name on the Journal Entry.
- Click Save and Close.
That’s it! I told you it was really easy 🙂 You can save these steps and use them any time you need to record yourself moving your funds this way! It’ll work the same way every time.
Resolution for Issue 'From time to time, I need to fund my business account with a personal check to help with expenses. What kind/category of transaction is this?' available: Yes (Solved).
Source: Intuit Community forum.
From time to time, I need to fund my business account with a personal check to help with expenses. What kind/category of transaction is this?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for business account
Quickbooks Repair Pro will resolve it efficiently and affordably. Guaranteed resolution of your issue, or you pay nothing!
Error Recovery for business account [Canada]
E-Tech is the #1 Quickbooks data migration and Conversion service provider.
Additional Support Options: