Quickbooks/Accounting Question - Wrong Credit Card

Discussion in 'Business Operations' started by Darryl G, Dec 17, 2011.

  1. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Ok, I was just entering some expense detail into Quickbooks. I buy most of my materials/supplies with a credit card and it's usually just a matter of entering them in from my statement. I have an account set up for it on Quickbooks and then categorize the expenses.

    The problem is that I made a bunch of purchases for the business over a 3 day period with my personal credit card instead of my business one...don't know how I managed that but I did to the tune of around $750. Now I don't mind calling that an owner contribution on the books...but how do I get them entered into the books without an account set up for them to charge against...I want them in there so they show as deductible expenses. I used to have an accountant to bounce this sort of stuff off of but haven't for a few years because I felt they were billing me excessively. Maybe I'm just having a mental block or something.

  2. Darryl G

    Darryl G Inactive
    Messages: 9,500

    OK, nevermind...guess I've done this before and just made a journal entry for a partner investment. I looked back in my partner investment account. Sorry to bother you...lol.
  3. DuallyVette

    DuallyVette LawnSite Gold Member
    Messages: 3,793

    I'm no expert in accounting, but I'm not a fan of your method. I've been using QB since 1996, and there are many features that I haven't discovered.
    I list all my credit card accounts Capitol One 4567, Chase 1234, Cash, Amex3456,etc. I put the receipts on my desk during the week. Then I enter each charge into QB on the appropriate card. If you just get the charges from your CC statement, you may not notice a fraudulently added charge. You also may forget what the charge was for and which category the charge belonged under. In your case, I would just add the personal account to QB and enter the charges onto that card. Then when it's time to pay the CC, just "write a check" out of your QB account.
  4. DuallyVette

    DuallyVette LawnSite Gold Member
    Messages: 3,793

    I also "reconcile" all my personal credit cards through QB. I have catogories called "Personal" to sort my personal expenses. Some accounts in the "chart of accounts" are set up to not show up as business expenses..re: "Corvette Fuel" is not attached to the "car & truck expenses for tax purposes.
  5. Darryl G

    Darryl G Inactive
    Messages: 9,500

    I do check my receipts as well for category. For some like the convience store I get all my gas it's pretty simple, as with Staples = office supplies. I used to enter every single item but have been told it isn't necessary fi they're in the same category...paper, envelopes, printer cartridges...who cares...they're office supplies. But for the "Benny's Home & Auto" which is kind of a general store and hardware store wrapped up into one...a mini Walmart....I get all sorts of stuff that goes into different categories so I have to enter off of the receipt.

    I don't get a chance to enter my expense detail for a while sometimes. My office manager is supposed to do that, but she never does. I'd fire her but I think that move might affect our marriage, lol.

    And that personal credit card bill has already been paid, but I suppose I could still enter it as an account...I'll have to thing about it when I'm feeling sharper.

    I do appreciate the advice...I'm pretty good with this accounting stuff...what I'm not good at is spending time on it, lol.
  6. britelights

    britelights LawnSite Member
    Messages: 91

    My background is all accounting/tax...I'm an Enrolled Agent with the IRS, Bachelor's in Accounting, and I have done alot of QuickBooks consulting work.

    If your business purchase on your personal credit card was something that rarely happens there's no need to set up an account for your personal cc. You're just fine doing a journal entry to debit your expense accounts and then credit 'Owner Investments.'
  7. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Thanks...that's what I've done before...it's not the norm. I try to keep my personal and business stuff seperate. Usually it's something like a small cash purchase of a few dollars or a dump fee or something out of my pocket, often so small I don't even worry about it. I guess I should set up a petty cash fund for the business but never have.

    Somehow when I was doing a bunch of landscaping work my personal card ended up paying for all the materials...must have been running around faster than my brain could keep up, lol.
  8. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,192

    If your a sole prop doesn't matter what card you use anyway as there is no entity to deal with. Not sure what your biz structure is.
  9. Darryl G

    Darryl G Inactive
    Messages: 9,500

    The business is an LLC with my wife and I as partners, so I'll just enter it as an owner contribution/investiment. When I want money I just take it out as an owner draw.

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