I used my personal funds to make a purchase for the business. How do I enter this into QuickBooks?
Sometimes it happens that you need to use your personal funds for a business purchase. There’s an easy way to get this entered into your QuickBooks data file whether you’re using the desktop version or QBO.
First, create a new credit card account. This account will be used to capture all purchases made by you using your personal funds (the method of payment doesn’t matter). If I was entering this into my own set of books, I would call it “Marnie’s Expenses” or something similar.
Then, using the Enter Credit Card Charges function found in the Banking menu (desktop) or Expense function found in the quick create menu (QBO), enter the details of the purchase (date, vendor, amount, account, etc.) using the new credit card account you just created. If you want, you can add the payment method in the memo field (i.e. Debit, Cheque No., Cash, Amex, etc). Continue entering all your personal funds purchases this way. The transactions will accumulate in this account.
When you are reimbursing yourself for these purchases, simply write yourself a cheque for the total amount in the account, coding it to the new credit card account. This will zero out the account.
If you want to let these purchases end up in Shareholder Loan (or Owner’s Equity) account, you will need to journal the amount over to that account periodically. You will Debit the Credit Card Account and Credit the Shareholder Loan account. I suggest monthly, but be sure to do it at your fiscal year end so that the balance in the new credit card account is zero.