USA Need Help Setting Up Books

[kaleob]

hello, I have been paying for items I strictly use for business with my personal bank account, amex debit or credit card. for debit card and bank, payment is made at the time of invoicing. when I pay with credit card, I have a balance on the card, so payment is not actually made for the expense.

How do I account for items that I pay with my credit card and do not make payment to pay it off yet?

For all my transactions do I have to balance all bank, cc and debit card statements because i used that method to pay my business expenses, or can I just show on the statement that the purchase did exist?

I really need to get y books in order, please advise.

Thanks

 

[Drmdcpa]

A lot of issues there.

Using a personal credit card is the same as using cash. The transaction should be booked when made, not when the credit card is paid assuming your are using the cash basis of accounting.

You should try to designate one card for business use and get a separate bank account for business use.

You do not but should consider reconciling all accounts.

I am assuming you are a sole proprietor thus you are not required to use double entry accounting like corporations.

It would probably be better if you paid a freelance bookkeeper instead of doing the books yourself. Your time is more valuable serving your customers and business rather than doing tedious bookkeeping.

It might also serve you well to develop a relationship with a CPA experienced with small businesses.