Paying a Business Expense From With a Personal Check


T

TomBk

I know paying a business expense out of a personal account is to be
avoided, but it was something I had to do.

How should this be handled in accounting terms and how entered into
Quickbooks?
 
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R

RobertM

TomBk said:
PS: Same question using a personal credit card.
This situation arose once shortly after I began using QB. I first
transferred the money from Owner's Capital to Undeposited Funds using a
journal entry, and then paid the bill from undeposited funds. I never found
a way to transfer from Owners Capital to the vendor from within the Bill Pay
part of QB.

Bob
 
T

Tom Moreau

We handle it by first debiting the appropriate expense account and crediting
the Due to Shareholder (long term liability) account. When we then pay
ourselves back, we Write Check - debit Due to Shareholder and credit our
company bank account.

--
Tom

----------------------------------------------------
Thomas A. Moreau, BSc, PhD, MCSE, MCDBA
SQL Server MVP
Columnist, SQL Server Professional
Toronto, ON Canada
www.pinpub.com
..

TomBk said:
PS: Same question using a personal credit card.
This situation arose once shortly after I began using QB. I first
transferred the money from Owner's Capital to Undeposited Funds using a
journal entry, and then paid the bill from undeposited funds. I never found
a way to transfer from Owners Capital to the vendor from within the Bill Pay
part of QB.

Bob
 
A

Allan Martin

TomBk said:
I know paying a business expense out of a personal account is to be
avoided, but it was something I had to do.

How should this be handled in accounting terms and how entered into
Quickbooks?

Congratulations, you are the 100,000th QuickBooks user to ask this question.
 
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M

mrsgator88

TomBk said:
I know paying a business expense out of a personal account is to be
avoided, but it was something I had to do.

How should this be handled in accounting terms and how entered into
Quickbooks?
Its not a big deal. Its simply an expense account. Every company deals
with this. When you reimburse yourself or an employee, make the check out
to the employee, and charge the appropriate expense account (supplies,
meals, etc.). Its the same whether you use a check or credit card.

To keep things "clean" however, carry a business check if appropriate, and
get a credit card that is just used for business expenses.

Steve
 
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