Used a personal check from a personal checking account to pay a company bill for a company I own.
I set up a loan and registered the payment as a loan to the company.
In the check register, what account should I use for the check?
Used a personal check from a personal checking account to pay a company bill for a company I own.
I set up a loan and registered the payment as a loan to the company.
In the check register, what account should I use for the check?
Huh? You should have created the balance in the loan account through the transfer from your check account.
Create a Quicken asset account called, for example, Company Loan.
Post the check as a transfer to the Company Loan account, which gets recorded as [Company Loan] in the category column.
Hi, Tom.
The answer will be different if your company is a sole proprietorship than if it is a corporation. And it will be different if you have a separate set of books (or Quicken file) for the company.
For tax purposes, you cannot loan money to yourself, even if "yourself" is your sole proprietorship business. But you can loan money to a corporation, even if you own all the shares. And you can sue the corporation to collect. So be sure to have a separate set of books for the corporation, even if it is just your "alter ego". Tax case books are full of cases where a corporation was not allowed to deduct an expense because the corporation didn't pay it, and the corporation's owner could not deduct the expense he paid because it was not his obligation to pay.
For accounting and management purposes, though, it is quite appropriate to create a "Loan Receivable" asset account on your personal books, mirroring a "Loans Payable" liability account on the company's books. Just as if the loan were from you to me or any other unrelated party.
Some of us with small proprietorships simply use Classes and other such techniques to keep the company's transactions in the same Quicken file as our personal accounts. In that situation, we just record a Transfer when we move cash into the company's bank account. Or we just record the expense in the proper business expense category (and class?) when we write a personal check to pay a business expense. If the "bill" was for purchase of a business asset, we record the check as a purchase in a business asset account, just as if we paid it from the company checking account. With a sole proprietorship, it's all our money, just in different pockets.
Since you didn't tell us much about your company, those vague comments are the best I can do for now.
RC
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