Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
June 26, 2025
Question

Loan Payable / Reimbursement

  • June 26, 2025
  • 1 reply
  • 6 views

I loaned my bookkeeping business $2000 for start-up.  I just entered a bill in QBO that I paid personally and I want to reimburse myself and decrease the loan payable.  I also need to reflect the continuing education expense.  I'm not sure how to do this in the best way.  Any help would be greatly appreciated.  

1 reply

Rainflurry
Level 11
June 26, 2025

@DavBkpg 

 

Are you a sole proprietorship?  If so, the $2,000 you put into the business is Owner's Capital (equity account), not a loan.  Money put into or taken out of the business is recorded to Owner's Capital.  The expense paid personally can be recorded as a $0 bill in QBO: go to New > Bill, one line 1, enter the expense as a positive amount, and on line 2, enter Owner's Capital as a negative amount.  Then, to reimburse yourself, record a payment (check or expense transaction) to yourself and assign Owner's Capital to the payment. 

 

If you're 100% owner of an S-Corp, use Shareholder Contributions (equity account) for the $2K and the negative amount on the bill.  Use Shareholder Distributions (equity account) for the reimbursement.