QuickBooks POS 10.0
with custom hardware bundle
as low as $1099
How to Enter Business Expenses Paid with Personal Funds in QuickBooks
Published 01/28/2010 | 
Can you answer another quick question for me? You may charge me if you want… I have a personal account that I have bought some things for the business with… How do I enter those transactions? Is it a journal entry, or do I use the register? When I pay for personal things with my business account, it comes off my owners capital… And, when I put money in by a transfer, it goes to my owners capital.
You can use an owners equity account in Banking > Transfer Funds. But that really only works when you actually transfer cash between accounts. You should use a journal entry (Company > Make General Journal Entries) to book business expenses paid with personal fund (cash, check or credit card) – debit your business expense account and credit your owners equity account.
However, journal entries can be really confusing for non-accountants so I highly recommend that you avoid this whenever possible even if it means getting a business credit card or devoting one of your personal cards 100% to business expenses.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.
QuickBooks price list | Buy QuickBookse | Free trial of QuickBooks POS | Free trial of QuickBooks Enterprise
Why not to create special liability account? And name for example – Settlements with staff/directors/shareholders/employees?
You should only book it to a liability account if the business is going to pay it back. In our experience, that rarely happens especially with sole proprietors.