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Archive for the tag “Credit Cards”

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.

Did you sign up for e-statements? Don’t forget to save or print!

So you’ve gone green and signed up for e-statements. Kudos to you! Here’s how going paperless helps the environment, compliments of http://payitgreen.org/

PayitGreen

There’s nothing better than neglecting my own bookkeeping and sitting down to do it a couple times a year. It fulfills my need for a challenge. LOL! (I don’t recommend this, by the way!) This last time, I went to my credit card provider’s website to download the past twelve months of statements into QuickBooks. Except eight of them were gone! Only the most recent four were available to download into QuickBooks. The missing months were easy enough to access in PDF format (they keep seven years for me), but the downloadable files were indeed gone with no way to get them back. That made for a lot of manual data entry for me.

Another of my credit card providers only saves six months, PDF or otherwise. After that, I have to contact them to retrieve the missing statements. This involves an email, a confirmation email, a password and a time limit to fetch them… which I typically miss. I then have to start the entire process of retrieval over again!

Banks and credit card issuers often make only a certain number of statements available online. In many cases, it’s only a few months. If you need to go back farther than that, you may have a few hoops to jump through. You may even be required to pay a fee.

So here’s a reminder. Save those files to your computer every couple months (and if you still prefer to print, no judgement here!).

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