Question

Entering receipts & expenses paid by owner's personal investments

Forum|Forum|4 years ago
November 15, 2021
2 replies
58 views

Hello - I recently started my Quickbooks account and am trying to upload all my past receipts and expenses. I set up my business' bank account back in July and have had all the transactions from that specific account auto-upload since, but there are many start-up transactions that occurred via my personal bank account before July. For obvious reasons, I don't want to have my personal bank account auto-upload transactions. I'm really confused on how to add these transactions WITH receipts attached. I have all the receipts for these transactions made from my personal account that I'd still like to have handy come tax time, but I can't seem to find a way to file a receipt under Owner's Equity/Investments. Thank you.

QuickBooks Online

JessT

Moderator

Hello, lightbyliv!

Welcome and thank you for taking the time to post today!

Yes, you can record those start-up expenses and use equity accounts since they were paid using your personal funds. Here's an article with steps for you to follow: Pay for business expenses with personal funds.

After recording the transactions, you can match your downloaded transactions to them.

Let me know if you have other questions in mind, Take care!

L

lightbylivAuthor

Hi Jess! Thank you for your response. Another related question just to clarify - when I am reviewing uploaded receipts, it requires me to put a "Bank/Credit Account". Should I create a "credit" account called Owner's Investments and link the receipt to that? Or should I just link it to my business bank account even though that's not what was used to make the purchase?

JessT

Moderator

You're welcome, lightbyliv!

It's good to see you again! Hope you're having a great day!

Instead of uploading receipts, you’ll want to record them as journal entries, as stated in the article. It will not require you to post the amounts to a bank or credit card account.

Let’s say you bought office supplies, your JE will be a debit to an expense account and a credit to an equity account. This is just a sample. It's best to seek advice from an accounting professional.

You can also check your equity account balance in the Chart of Accounts as you make journal entries.

I'm just right here if you still have other questions about those startup expenses.

R

RandyNesbit

So I googled this topic hoping to find a shortcut because I know how to do this the long and laber intensive way.

You assign the account to cash, at least thats what I did because my client doesnt use this account. All their transactions go through the bank, or electronic avenues.

from the receipts tab you cannot do all the work and completely match it to an owners equity account. You must create the expense in the receipts tab and then go down to receipts, find the transaction you just added and edit it. You then add a second line with owners equity and a negative amount matching the positive amount. This will zero out the expense so it will not affect whichever payment account you signed it to. Then you save and close and then create the expense. now you have to go through and do this one by one because no one told us their faster/ secret way of doing it lol.

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