I just started a company and I am very new to QB Online Essentials. I am yet to invoice my customer and the usual net is 30 days. But I have accrued some expenses associated with the business like paying for GL & WC insurance premiums using my Business credit card. The credit card bill is due in 3 weeks. I do not have any money to pay for this expense using my Business Checking account. But I can pay it via from my personal checking account.
It looks like I need to loan $5,000 to my business checking account from my persoanl checking account to pay for the business credit card. Upon getting paid, I want to put the money back in personal checking account.
How can I document this in QB Online system?
Once you have transferred money from your personal to business checking account, this is how you will need to record the deposit in new QuickBooks Online.
Click “Plus” icon menu
Select Bank Deposit from “Other” menu
Choose the correct bank account (if you have more bank accounts)
Select correct date of deposit
Received From = Jimmy Smith (example only) > Add New as “Vendor” if needed (slightly different name if already setup as employee)
Account = Loan Payable to Jimmy Smith (example only) > Add New > Category Type > Other Current Liabilities > Loan Payable > Change Name to Loan Payable to Jimmy Smith > Leave Balance “Blank” > Save
Description = Temporary loan to the company, to be repaid within 60 days (for example)
Payment Method = Direct Deposit/Check/Cash??
Ref No = Bank deposit reference number if available
Amount = exact deposit amount (say $5,000 for this example)
Save and Close
Loan repayment to Jimmy Smith
GO to Vendors
Select Expense (if bank transfer) > select Check if issued check
Select Jimmy Smith (Vendor)
Account = Loan Payable to Jimmy Smith
Description = Repayment of loan with borrowed date
Amount = $5,000.00 (if full re-payment)
Those two entries should document borrowed money for business as well as repayment. And, the account should reflect zero balance when done.