My accountant and I had a tough time trying to figure out a way in QB to enter expenses that were made on my personal credit card.
What we wanted to do was enter an expense, and then directly increase the Partner Equity account by the same amount. Basically, treat the transaction as if I had injected Equity into the company by giving it this item, or paying for this expense.
Instead QB seems to want me to transfer funds from equity to a bank account, and then proceed to pay the bill with the bank account. Unfortunately this would not match up with my bank records, as I technically did not transfer anything in and out of that account.
We ended up making a general journal entry, whereby we increase the Expense account and the Partner Equity account directly.
A few good suggestions given to me as a work-around:
ReplyDelete- Enter each credit card expense as a vendor bill, with myself as a vendor. This can be used if you intend to pay yourself back from the company in the short term.
- Enter credit card charges as usual in QB, pay for them by making a general journal entry against the Partner Equity Account. This allows you to reduce the usage of General Journal Entries, and use the regular QB UI instead. This would be used in cases where you don't intend to pay yourself back immediately, but keep the money in the company as Equity instead.