QuickBooks Online: Entering Expenses paid in CASH (or with owner’s personal account)
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- Опубліковано 12 чер 2024
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Hector, I came just to say, you are awesome. You covered all my questions about this subject. You are a great teacher because you keeping simple, clear and cover all points. Congrats! Thank you for sharing.
Thanks :)
Awesome videos! My son and I started a small business recently and recognized the need for a simple accounting solution. While I didn't realize it when we made the decision to use Quickbooks, it was the best decision ever based on the work you have made available free to me! I can't thank you enough for sharing this information.
As always, you are giving juicy information in every topic about QBO. Thank you.
Hector, can't thank you enough for taking the time to make your QB videos. As a newly formed small business owner you have helped us so much. From setting up our QB program to various questions I have had while using QB. Your videos are so user friendly and you break down everything so concise. Thanks again!
Glad you like them!
I forgot to sat thank you for your videos. They're terrific -- even if I do have to play them over and over to absorb all of the information you are so generously providing. :)
:)
Thanks for teaching your classes so well.
3yrs old and still saved my day! Def will check out your courses!
You're very good. This should have been two videos. By the time I got to the personal expense from another credit card my brain was frying.
I know... sorry
Great video Hector as usual! Not sure what I would do without you.
:)
Well done Hector! You are by far the most articulate QB professional I have found here. THANK YOU for what you're doing to help me/us in the QBO world. Please keep up the GREAT helpful tutorials!!
My pleasure!
I have been watching your videos quite recent in 2023 and i must say they've really been helpful in my Quickbook journey. Thank you so much Mr Hector... your unique voice even makes the experience worth the while
Great
Hector, thanks for putting this video as well as so many videos together on how to use QuickBooks. It is incredibly helpful. One comment for improvement is to pause for about 5 seconds between going from one screen to the next. It helps give a viewer time to absorb what you just said before going to the next screen. It does tend to move a little too fast for us beginners. Thanks!
You can hit Pause in UA-cam.. so because of that, i don’t worry about making the videos timed to match the learner’s speed. I prefer people can pause when they need to.
Hector --- ive watched several QBs tutorials - YOU are the best...thank you Sir!
Thanks, glad you like them
Great content. So much more than title indicates and just what I needed.
Yeap, my videos are very comprehensive
Great video. Definitely answered my questions
Dude! You are awesome! Thanks for the quick ....straight to the point explanations! So helpful!
Glad you like it
you just happen to answer my question in this video! thank you for sharing your knowledge :)
I love all your videos , such a nice person!!! you explain everything very clear :)
:)
You are amazing teacher Hector. Thank you very much
You are welcome
Thank you so much. You explain things so well. I have learnt a lot from your videos. Very much obliged.
You welcome
Thanks Hector !
I am very new to QBO, you are a lifesaver!!
Thank you! happy to help!
Héctor gracias por toda esta información me ayudas mucho 🥰gracias miles gracias
Great tutorial .
Thanks for Video..
Hector thank you. Outstanding video.
You welcome
Bro, you are truly awesome. Brilliant.
Really learned a lot. Thank you.
Hello Hector... I really appreciate your video tutorials. I am an S-Corp owner and the bookkeeper and your simple concise instructions are very appreciated.
Great!
Good job Garcia
I always go to you first for all questions! I love how you explain. Follow up question... What if the owner pays with a personal credit card and you need to log the expense to the vendor AND repay the PERSONAL owner's credit card?
Enter the credit card and just enter the business expenses.. you won’t reconcile it at zero once it’s paid off
@@HectorGarciaCPA Hi Hector, can you please explain this process a little bit more. This is my exact situation and don't understand how to "enter the credit card". I followed the steps on your video but now realize that is not my situation.
Thank you Hector, your video is pretty good!!
You welcome
You saved my life. Thank you, excellent info
You are welcome
Hector, you are great, your explanation is great. Thanks
Wow. easier to understand. thanks for this.
Thank you so much
Thank you very much! It was so helpful!
:)
Thank you
Thanks for update. How do you conduct payable reconciliation
Thanks hector...
Wow! So helpful! And covered EVERYTHING I've been struggling with. I just signed up for QB and wish I had seen this so I could have gotten the better discount. Oh well. Anyway, I see above that many users have co-mingled their personal/business accounts and it gets confusing. My boyfriend did that and because he doesn't yet have a business checking, I've put ALL personal expenses in Other Miscellaneous Expenses and tagged them for what they were. Should those be put elsewhere so they don't show up on P/L and balance sheet? Where's the video you made on how to categorize business equipment (either as an expense or as an asset)? Thank you so much for your amazing videos!
I need to know this as well
Thanks Hector! How would I make an entry of reimbursement of a loan from owner's personal account? I took the loan to purchase a business vehicle, do I need to make an entry as fixed entry?
Great video Thank you!!
Hector, one more question. Does the owner's money account always have to be at $0? Is it okay to leave it in a minus or positive state? Same question for petty cash. Thank you so much for your videos. They are awesome! I already know a lot about Quickbooks. I'm just rusty, and you are getting into more details so you are really helping.
That is so great ., as always,...Great video!....
Thanks
Hello Hector, I'm wondering how to handle reimbursement to employees for expenses they pay out of their own pocket?
Great explanation
Two questions: 1) When I match my Square transactions, those transactions still appear on the list. Why? 2) On Square, they don't reveal the name of some of my clients. How do I know who paid to credit in QuickBooks?
Great. It is easy to catch up for a newbie in QB. I have a different scenario. What if we pay cash for inventories where it is payment first (goods not received) and an employee initially pays it. Management had him manage petty cash but, considering the amount of inventory they do not allow to use petty cash account. Can i possibly use advances to suppliers plus advances from employee in this case? how are we going to perform the actual payment in Quickbooks? Appreciate in advance.
You saved the Best By as a customer ! It Should be VENDOR
Hi, thanks for your videos!!! They are very helpfull.
I have a situation in between the contrib/distrib situation it self. The previous bookeeper was using the distribution account for reimburse and also for money the owners took from the company. I in my hand woul like to do it using dividens payable and then dividens. Dividens payable is a liability, but how i set the dividens the company pays? TIA
This guy is the best. My question before ruining into these tutorials is: Why bean counters and bookies make accounting look like it’s the equivalent to splitting the atom? Or going to mars🤣
I got question sir , what if we have a company and we are two accountant one of us would record the transactions for the current financial Year and the other for the previous years that we haven't record before ... Is it possible to work with two periods in the same account ??
Thanks man
I do have a question. Instead of writing a check, can I make a transfer from a checking acct to petty cash ? or from merchant deposits can I split the deposit to the bank acct and to petty cash/
Hello Hector. I have a supplier that makes two kinds of deposit in my business account, one for the products I bought, and another deposit for FBA preparations (Amazon concept). So, I need the banking rule for categorizing the same supplier with different deposits.
This is why you don't mix personal with business. If your client has hundreds of transactions, this can get messy real quick. I get so confused with this. Thank you Hector!
Yeap… they make a mess
Excellent
I would write a zero expense, first line with positive expense amount, second line negative amount to owners equity.
That’s also possible
Just wanted to say thank you. You have no idea how much your videos have helped. I am a creative - so my brain is not wired for this but you have helped me immensely.🙏🏽
Awesome.. do you follow Chris Do and TheFutur UA-cam channel? A most for all creatives
@@HectorGarciaCPA Thank you for that. No I don't, but will definitely check it now.
Pero si el cash lo tomaron del cash del restaurant y lo ponen en el sistema de focus como paid outs? como lo registras?
Hector - when I record an expense that an employee or owner makes from their personal bank account, I generally record it as an "Employee Reimbursement" - the payee is the employee or owner and the category is Employee Reimbursement and my notes and attachments indicate where the purchase was made and for what as well as indicating if it was billable or billed to a customer project - is this incorrect? All of my employee or owner personal expenses are done this way in our Quickbooks - HELP!!!!
@ this software is fantastic and highly recommend.
Excellen Hector, I had done it using an unpaid deposit account, but is better to increase the owners equity
Yeap
Thank you for these videos. What I get paid in cash for an invoice and I don't deposit it and keep it on hand. I have been recording it as cash on hand...but it is showing up on my reconcile report under my chequing account? I think I am doing something wrong.
Good help
What if you transferred15.00/ personal money into business account to bring account back current after an non sufficient funds charge made your business account negative. Then you realized all you needed was 5.00 dollars to bring the business account to a positive balance and so you transferred the rest of the 10.00 dollars back to your personal account? I want to record the 5.00 dollars as an owners contribution, but what about the 10.00 dollars I accidently transferred in and back out to the personal account? What do I label that money if it was an accidental transfer?
What will be double entry for this transaction..... I am so confused as I have no idea how we are DR EXPENSES (Petty Cash) and CR Owners equity....
If the baggage expense is of business nature then why would reduce the business owner's money. My mind says it's better to write a cheque from checking account against the business owner's account for the replenishment of expense. And later on adjust the petty cash account with that amount. And the question from where petty cash will replenish is simple it comes from business i.e checking account. Can you validate that where I'm going wrong?
Hey Hector, great video! I do though have a question. If a owner takes an owners draw but then uses those funds to pay for business expenses, should they credit their owners contribution since they used the money to pay for business expenses or would it be better to have the business reimburse them for paying the bills?
Yes… or use the petty cash account
Hi Hector,
Thank you for a great explanation. What if the owner used his personal account to run the business for 6 months and then switch to a business account. How would you process those entries? Add the personal account as a customer and vendor too?
Yes I would. The personal account could be the petty cash account or the equity account. The people/businesses you pay, those would be vendors
@@HectorGarciaCPA Business owners need to hire a bookkeeper or accountant to do their accounting. Unfortunately some business owners think accounting is simple and they know what they are doing.
my petty cash has a running negative balance, how can i enter a transaction that shows the owner had actually loaned petty cash a large sum of money from the beginning of time, so that negative balance and any future balances are not negative.
You always make it clear and concise! However, what if you have cash that comes into the company that was intended to be deposited in the bank account for a different category other than Petty Cash and now being used as Petty Cash? Cash didn't make it to the bank. Petty Cash was previously had a zero balance and reconciled. How would you record?
It needs to be deposited into the petty cash and the expenses, what it was used for is recorded in that account.. just like the video
Hi Hector, I had a friend issue me a refund via Zelle for a damaged necklace that deposited to my business checking but was originally a personal bank purchase. I don’t want this to affect my P&L, how can I fix this and deposit back to my personal checking account?
Hey Hector, love the videos brother. Question I'm new to this and trying to learn. Accidentally listed a customer as a Vendor. Problem is Ive logged like 300 transaction direct deposits from them but they are showing them as a vendor and i need them to be a customer
cant change it as this point
Thank you, Hector, for sharing such an informative video. I have a question, I posted below the opening balance journal entry in QBO when we first bought the business(created by the statement of adjustment received from a lawyer at the time of purchase).
Dr. Equipment 85,000
Dr. Leasehold 110,000
Dr. Goodwill 30,000
@t 300
Dr. Inventory 60,305.99
Cr. business Loan 177682.5
Cr owners equity(balance) 113,653.49
Now when I'm trying to reconcile the bank account it is showing the money I transferred to the business account which as I understand should be Credited to the owner's contribution account. But if I do so it will increase the balance in an equity account(owners equity & owners contribution together). What would you suggest?
Viveka123 I can’t trouble major from here, I would say that money you put into the business is also owners equity
Thank you for your video; How would i deal this petty cash at the time of reconcile?
You need a petty cash register
Great video! Thank you!!!!
Thanks
Hi sir
Hope u will be fine. Plz guide us how to add suspense account and unappropriated PL account in chart of accounts in qb online
thanks
Love you ❤️
Great Video :)
Thanks
Hello Hector,
Thank you so much.
However, I would love to know how to go about the same issue using QB desktop version?
Same exact process
first of all, THANK YOU FOR YOUR HELP!!! now, question is what i paid for a cell phone monthly service with my own personal credit card. do i record that as an expense or pay bill or bill? because i actually paid it for many months under my personal credit card not my business card. MUCHISIMAS GRACIAS!
As an expense from that “owner’s personal cash” account
Very informative! After entering an expense into the Petty Cash account, how do we move to the next step of reimbursing the owner for money spent for expenses during a given period of time?
Write a check to the owner.. categorize as “Petty Cash” so that account will be zeroed out
Did I miss something? I did not see your explanation for when an employee spends his or her personal funds for business expenses.
Great video! My employee use his money to buy things for business, should I set up an account called Due to Third Parties to record the loan? Later when I write a check to him, in the category section, I still use the Due to Third Parties account to reimburse him? Thanks!
Yes that works.. or wait until you pay him and just better the expense category in the reimbursement check
How much do you charge
Hector, I just found your channel and enjoyed the video on expenses paid in cash. My question relates to a charity. A member loaned money to the charity and would like the loan converted to a charitable donation. Right now the money is entered as a liability, "Loan covered by promissory note". As Treasurer how do I convert that loan to a charitable donation. Thanks for your help.
Change the category to “Donation Expense”
Hi Hector. You are the man. I have a question. Can I email you a question about Quickbooks directly? Thanks.
Yes.. but it needs to be answerable within a min or so.. otherwise o don’t have the bandwidth to answer them all
Hi, Please help!!! My owner is transferring money from personal account to company account and i am making payments for my expenses. & also i am paying salary to my employee but from another payroll app. But i need to record those payments in QuickBooks. How should I do that ?????
Hi Hector! I have a family business and wanted to know if the above video is also good for when my boys buy equipment to resell and I need to reimburse them when the equipment is sold. Please advise who to proceed. Thanks! love you videos very
Reimbursements are different.
New subscriber. Just found you and love your teaching method and how well organized your presentation is. I will be back I am sure!
Thanks, i hope you drive value from them
Hector, I have been a fan of yours, may I ask why not immediately post to owners money instead of petty cash?
Because some times people prefer a register with that history with natural transactions and not Journal Entries
Hector, thank you so much for these videos. I have been booking using Quickbooks and I do use the cash category. How do I keep track though of what happens to the rest of the party cash? Do I just awesome that it goes back to the owner? The owner gives me receipts of cash purchases and sometimes they are made with credit cards. However, in Quickbooks I only have the business checking account linked so any another way of purchases are keyed in cash category.
You need to into the check register for the petty cash
Hi Hector, in restaurant business, how to record cash that we give tips to our employees , and how to separate these tips that are deposited as sales on our bank account? Thank You
You need to record “Tips Income” and “Tips Wages Expense” in a journal entry
Hi Hector, Thank you for making so many great videos.
I have a question I'm hoping you could help with. I bought work gloves for my business with my personal account. I consider them a current asset as they will need to be replaced after a couple of months. Do I need to record this as an expense as well as owners equity? If so how would I do that?
Sparkylognut, definitely not called a Current Asset. Something like this is simply an expense of the business. The transaction would affect both an Expense account of your choosing and your Owner's Equity account if you don't have a Petty Cash account set up as Hector described. From the Owner's Equity account, select Journal Entry. Record the amount as a decrease in Owner's Equity, and select the appropriate Expense account.
@Rich Lewis Wouldn't this be an *increase* in the owner's equity since they used personal money to purchase an asset for the company?
@@Motojourney Definitely. That'll teach me not to post accounting advice late at night! LOL. Sorry for the slow response. Just came across your reply in another folder.
Hector, thank you. I've been making purchases of business needs with my personal credit card, so need to show these as expenses, credits, and liabilities at the same time, right? But now I want to reimburse myself out of the free balance in the corporate bank account--how do I do this so everything balances out at the end of the month and all transactions in the proper accounts?
This video explains all that
Hi Hector, the business is an arcade which brings in plenty cash, so does not use petty cash, but the boss buys hardware supplies and goes to the arcade, who reimburse him cash on the spot..from arcade revenue, the paper expense is given to me and i put the amount into qb as an expense but i do not know what to call the chart of account for this..because say the expense cost $200 - i have to show $200 was supplied from somewhere...but where?!
From revenue
My customer was charging personal/medical/business on all kinds of cards, then making card payments from the business account. I was going to put the payments as owner's draw, but should I still create and owner's money account for the charges they made? Or can I re-name the account from member 1 draw to owner's money? or can I just include expenses to and from the customer personal account in the owner's draw?
Yes use an owners draw account
When you are creating a check the check number you put in is it just a random number or is there a system on how you pick it
My own
Hi Hector! I learned a lot from your videos, I have a question, what about if I have been entering expenses and my cash account is negative but the money is coming from me, because I payed with my personal credit cards, how I make that cash account cero? Thank you!
Never mind I just watch the end of the video and found my question, thank you!