Managing transactions across both business and personal accounts can be complex, Andrew. It involves creating journal entries to ensure precise financial recording. Let's break this down step-by-step to ensure everything is accurately reflected in your reports.
First, I appreciate the details you provided about the reimbursement and how it doesn't impact the Profit and Loss (P&L) report as you expected. Ideally, it's recommended not to mix business and personal funds to streamline the accounting process and enhance accuracy. Since this covers a complex financial process, I'll only provide general guidance on addressing this matter. I recommend consulting an accountant throughout this workflow for expert advice tailored to your specific situation.
Create a Journal Entry for Business Expenses Paid with a Personal Credit Card:
- Go to the top menu and select Banking.
- Choose Make General Journal Entries.
- Create a journal entry debiting the expense and crediting an equity account to record the business expenses paid with the personal credit card.
In doing this, the purchase will already show up on the Profit and Loss report.
Record the Personal Credit Card Payment:
- Make another journal entry to document the personal credit card payment with the personal checking account. This involves debiting the equity account and crediting the personal checking account.
Record the Reimbursement Transaction:
- From the top menu, go to Banking.
- Select Write Checks.
- Please fill out the form and ensure it affects the equity account.
- Click Save & Close.
Additionally, consider consulting your accountant about effectively using the "Other" account type to manage this process. You can use QuickBooks' accountant tool to find a professional in your area for further assistance.
Furthermore, the transactions could have been added in the Downloaded Transactions window, leading to duplicate entries. Delete these duplicates from the bank register to keep your records clean.
To summarize, meticulously documenting each step in QuickBooks and involving an accountant will help ensure your reimbursement transfer reflects correctly against an expense tracking account on the P&L.
Regularly reconciling your QuickBooks accounts is also good practice to ensure they correspond to your bank statements. Here's a guide: Reconcile an account in QuickBooks Desktop.
I'm glad to be a part of your journey towards achieving accurate records in QuickBooks. If you have any other concerns or need further assistance, please know that this thread is always open for you to return to. Wishing you a productive day!
