How to Record Business Expenses Paid with Personal Funds in quickbooks
As you know there are numerous circumstances when you forget your business cards. At that time it may be crucial to pay with personal cards rather than business cards in certain circumstances. You may forget to bring your business cards with you on occasion. You will need to make significant investments in situations like this. How to Record Business Expenses Paid with Personal Funds in quickbooks is the subject of this article. Although it is recommended that company and personal funds be kept separate, we understand that this does not always happen. You can record a personal expense recovery as a check or an expense. Let’s have a look at How to Record Business Expenses Paid with Personal Funds in quickbooks in more depth. Let’s also take a look at scenarios where you’ll need to spend money on your own :
Table of Contents
Situations when you need to expenses on your own
- Due to a last-minute meeting schedule, you forget your business card while paying Aeroplane fare
- You forget your business card when visiting a client
- You misplaced your business card while refueling the card’s fuel
Process of How to Record Business Expenses Paid with Personal Funds in quickbooks
Step-1 Keep track of any business expenses you pay with your own money
- Firstly, Click on + New
- Then, Choose a journal entry
- After that, Pick an expenditure account for the expenditure on the first line
- Then, In the Debits column, enter the total purchase price
- Then, Partner’s equity or Owner’s equity should be selected on the second line.
- In the Credits column, enter the same purchase price.
- Then, Save and exit the program
Step-2 Choose the way you want your money to Refund
There the two ways to get your money refund
- Method 1
It is advised to record the Repayment of Cheques
- Firstly, Press + New
- Then, Select the steps as per Business View to begin, turn to Accountant view. Return to these steps after that
- Choose the preferred bank account as per your preference and reimburse your personal funds
- As per the category column, Choose owner’s equity
- Now, enter the required amount as per the reimbursement
- Save and Close or Save and New are the options
- Method 2
Make a note of the refund as a cost.
- Firstly, press + New
- Choose Expense
- Choose bank accounts based on how financial funds will be repaid.
- Choose partner’s equity from the category column.
- Choose Save and Close.
Process In quickbooks, you can keep track of both personal and business expenses
Let’s get to know about the following steps:
- Receipt of Expense Records
- Make an account and use it to keep track of your finances
- Keeping a Transactions Log is a good idea
- Generate General Ledger
- Produce a Trial Balance.
- Produce accurate financial statements for your business
- Keep track of your expenses by date.
Conclusion
To encapsulate, get to know about How to Record Business Expenses Paid with Personal Funds in quickbooks and the process of quickbooks, you can keep track of both personal and business expenses and the reason behind such situations. Read the steps carefully and put them into practice. Make sure you follow the steps exactly.
