Home – New › Forums › Money matters › Bookkeeping Help…GST question / Quickbooks
- This topic is empty.
-
AuthorPosts
-
June 27, 2017 at 11:20 am #996774Up::0
I use quickbooks to do my accounts.
I’m a sole trader and since March, due to cashflow problems Ive been using my personal credit card for business expenses.
So now I’m trying to get my accounts together for tax time but don’t know what to do with quickbooks.
Because the credit card is personal I don’t have it linked to my quickbooks.
So for all the purchases I made do I need to create a bill for them in quickbooks?
If so then how do I show that I paid with my personal credit card? What do I classify this as? Owners Contributions?June 27, 2017 at 11:32 am #1208971Up::0Hi Chippy Rain,
Isn’t Tax time great
I would do a general journal entry to allocate these transactions. Debit the expense accounts and credit the owner contributions account.
Hope this helps and good luck!
Diana
June 27, 2017 at 9:23 pm #1208972Up::0HI Chippy Rain,
I have Xero, so I am not sure if QuickBooks works the same, but when I spend personal funds on the business… say for petrol, I scan the receipt into Xero, (using my phone) and it asks me how did I pay for it – I select the option of ‘I want to be repaid’ instead of the business bank account, and it will do the transactions for me as expenses.I can then arrange a refund from the business for the expenses paid from my own pocket – but usually I just put it to Owner Drawings.
Hope this is helpful.. I would tend to think most accounting software would have similar features.
cheers
Tracy
June 28, 2017 at 12:29 am #1208973Up::0Hi Chippy rain,
You could create a new account under cash and equivalents and call it something like Expenses paid by owner. When creating the expense, you will then be able to allocate the expense to this account. This account will show as a “negative” asset until such time as your business can afford to repay your expenses. Alternatively at year end you can journal the total in this new account to Owners Contributions, as Nymble suggested in her earlier thread.
Please feel free to contact me if you need further info or clarification.
Regards
DaveJune 28, 2017 at 11:43 am #1208974Up::0BPi Strategies, post: 249077, member: 45743 wrote:Hi Chippy rain,
You could create a new account under cash and equivalents and call it something like Expenses paid by owner. When creating the expense, you will then be able to allocate the expense to this account. This account will show as a “negative” asset until such time as your business can afford to repay your expenses. Alternatively at year end you can journal the total in this new account to Owners Contributions, as Nymble suggested in her earlier thread.
Please feel free to contact me if you need further info or clarification.
Regards
Dave
Hi Dave,
Thanks for the advice.
Im just wondering now, Im in quickbooks online, I already have an owners contribution and drawings account (equity account).
So what do I do next?
If I create an expense I can’t link it to my owners contribution account only my bank accounts…
Im confused…..Also still want to be able to claim the gstJune 28, 2017 at 12:43 pm #1208975Up::0Hi Chippy rain,
By creating the new account ” Expenses paid by Owner”, in hindsight not a good description, as a cash and cash equivalent type account, you are in effect creating a new “bank account”.When you come to enter the expense,choose the newly created account as the paid from account and enter the actual expense under the correct expense account i.e. telephone. GST will be calculated correctly.
The new “bank account” will accumulate all the payments that you personally make on behalf of the company. As I said in my earlier email, once the company starts to generate cash again, which hopefully will be in the very near future, you can pay yourself back or journal the total in the “bank” account to the Owners Contributions account.
I have attached a screenshot of the Expense screen.
Clear as mud ????
Regards
Dave -
AuthorPosts
- You must be logged in to reply to this topic.