Paying a Business Expense From With a Personal Check

PS: Same question using a personal credit card.

This situation arose once shortly after I began using QB. I first transferred the money from Owner's Capital to Undeposited Funds using a journal entry, and then paid the bill from undeposited funds. I never found a way to transfer from Owners Capital to the vendor from within the Bill Pay part of QB.

Bob

We handle it by first debiting the appropriate expense account and crediting the Due to Shareholder (long term liability) account. When we then pay ourselves back, we Write Check - debit Due to Shareholder and credit our company bank account.

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Its not a big deal. Its simply an expense account. Every company deals with this. When you reimburse yourself or an employee, make the check out to the employee, and charge the appropriate expense account (supplies, meals, etc.). Its the same whether you use a check or credit card.

To keep things "clean" however, carry a business check if appropriate, and get a credit card that is just used for business expenses.

Steve