How do I record personal expenses in QuickBooks?
Hi, let me introduce myself. My name is Rosie Brammer, the newest member of the Edward W. Sager, PC team. As a staff accountant I deal with issues from a different perspective, so I am excited to help contribute to this blog. In my 10 years of bookkeeping and tax experience, I can honestly say that questions regarding the recording of personal expenses on QuickBooks are common amongst small business owners.
While it is best to keep business and personal expenses separate, if you accidentally make a personal expense on a business credit card, don’t panic…………I have an easy solution for you.
When you receive the business credit card statement in the mail, go through the itemized charges and total up the expenses which are personal items (again hopefully there aren’t many as it is best to keep personal and business expenses separate). This total will be posted to your equity draw account when you record the credit card payment. When you enter the categorized expenses for the business expenses on the credit card, simply include the personal expense and post it to the Draw account.
If you wish to reimburse the company for the personal expense, simply write a personal check back to the business. When you deposit the check, post the deposit back to the draw account which you posted the expense to. As always, if you need assistance with this or any other QuickBooks issues, please feel free to contact us.