Thank you for taking the time and explaining to us how to handle these types of situations
@ClaraCFO Жыл бұрын
Happy to help! This has come up in comments before, so I hope this helps people!
@yinggao48852 ай бұрын
Just had this question when I do CC transactions, so helpful for me!
@soonerbrad44 Жыл бұрын
I love your videos. You explain things so clearly. I have done this many times before. Thank you
@altafhusaen4 ай бұрын
Thanks for making this video.
@ClaraCFO4 ай бұрын
Thanks for watching!
@alonzolopez6264 Жыл бұрын
Thank You And showing examples that helps me out So Much. Your The Best God Bless YOU
@ClaraCFO Жыл бұрын
Thanks for being here!
@JoeDeWitt71 Жыл бұрын
Yes, thank you so much! This was very helpful.
@ClaraCFO Жыл бұрын
Great! that's the goal!
@josephpapino7 ай бұрын
Thanks so much for the video. In the example where I charged personal funds accidentally to my business credit card and I want to pay them back -- I followed what you are saying about marking them as Loan to Owner. But how do I classify the payment like I made a payment to that business card from my personal checking account to offset the cost, but what do I mark that 'payment' as/from? It shows as a payment on the same credit card but its a payment from my personal account so how would I classify that one? Please and THANK YOU!!
@briannalynnnewkirk Жыл бұрын
AMAZING! Your videos are so helpful! Can you please do a video for online content creators? For example- Can we write off clothes, hair/nail appointments, etc becasue it is my online appearanc? Can I write off a trip where I document a "how to stay fit on vacation?"
@georgesmith9178Ай бұрын
Great video. I would have loved for you to have shown the last portion where you only explained that when the check to yourself transaction shows from your auto bank feed, you will then reflect that against the payable account (Amount due to Owner). I assume this would be another journal entry where you debit the business bank account with the amount of the check and credit the Amount due to Owner account.
@vinitnarayan8443 Жыл бұрын
Thank you, Love from India 🎉
@ClaraCFO Жыл бұрын
hi from the US!
@TammyOudeAlink4 ай бұрын
This video is great and I love your clear explanation. I have one question. I followed what you said about categorizing the accidental charges as 'Current Assets' Account type, 'Loans To Officers' Detail Type. My problem is I don't know how to categorize the reimbursement payment that I made. Do I create a 'Current Liabilities' Account type, "Loan Payable' Detail Type ? Thanks so much for your help!!!!
@ariher26Ай бұрын
I have the same question. how do I record the reimbursement?
@iampal8585 ай бұрын
thanks for the video
@MarylandBuilderCrew9 ай бұрын
very helpfull! thanks
@brianmcclemens2802 Жыл бұрын
Blessed
@ClaraCFO Жыл бұрын
Thanks for being here Brian!
@katherinesarkozy4043 Жыл бұрын
Can you explain paying yourself categorization as owner in this (owners draw)
@EmilyMencken-yj9xw2 ай бұрын
Great tutorial! Am I missing something? Can't I just write a check to the owner and split it against the appropriate expense categories? Is there a reason we need to set up a liability account? I guess if the amount is large and is going to be paid back over time?
@MrBrandoncal8 ай бұрын
thank you!
@user-zc1zu9ir2i3 ай бұрын
When to make a journal entry or just create an expense?
@chavilieberman8902 ай бұрын
I just came across this trying to figure out how to record something in quickbooks. It was great and I plan to watch more of your clips. However, I am not sure how to fix the issue I am having. I paid a vendor bill which is already recorded in the books with a credit card that is a personal card and is not in the books. I then paid the personal card from the business account so in fact I have been "paid back". This card is not in my books. So I don't know how to show the bill being paid for. And then I don't know how to record the bank payment to a card that is not in the books. Can you make a video about that?
@gwenhansellhendry36154 ай бұрын
The journal entry comes into the checking register when you get paid back?
@noelvisramirezaccounting Жыл бұрын
I think you can put it as a distribution
@johnnyeklof50134 ай бұрын
Thanks
@ClaraCFO4 ай бұрын
Woah! Just saw this - thank you for your gift! Much appreciated!
@burmajobononno32387 ай бұрын
In this video how to fix personal charges with Biz funds, you taught us how to categorize that but did not go into recording the officer paying it back. Please advise.
@Jake-hn8hl4 ай бұрын
Awesome video, new subscriber. I've got a 2-person LLC where I've incurred a couple dozen personal expenses that I want to get onto the P&L, but at the same time mark as an Owner's contribution (with simplest personal tax impact which Im assuming is just a single Owner's Contribution). Is the simplest way first to create an Owner's Contribution as bank deposit, then the journal entry you described with Expenses as COGS with the offset to the new Payable to Owner, and then finally cut a check right back to myself coded to the Payables to Owner account? Any reason I couldn't do the same but use an Expense instead of a Journal entry? Thank you!
@sharonbk731010 ай бұрын
Hi Clara, thank you for this helpful video. absolutely love love love it. I have a question. If I made 3 different business-related changes on my personal credit card, let's say $10, $30, and another $10, I would add those 3 charges separately in QB in the journal entry with the receipt. The question is, can I make one payment to myself of $50 "Payable to the owner?" instead of doing this 3 separate times?
@chocolatieree Жыл бұрын
So helpful and love your videos! Thinking dow the road, for an employee expensing something to be paid back, would this follow the same logic as listing under "Other Current Liabilities" but name it something like "Payable to Employee"?
@ClaraCFO Жыл бұрын
Yes, theoretically. Do you use some kind of expense report management system like expensify or dext?
@chocolatieree Жыл бұрын
@@ClaraCFO I'm not there yet in my small business development, but would expect to use something.
@whitecollarworkshop10 ай бұрын
What if you have an owner who uses business cards to spend many thousands of dollars a year for personal stuff and he/she wants to leave it as business expenses and not pay it back?
@user-im4dh8je4j7 ай бұрын
What's the difference with the tax if we do payable to owner or off-set owner's draw account?
@GreenLedgerAccounting4 ай бұрын
Thank you for the explanation! I did have one question for business expenses on personal. Is there any difference between wanting to pay back a purchase I made with personal checking account or my personal credit card? I had made purchases with both but I wanted to be sure if they should be treated differently.
@ClaraCFO4 ай бұрын
They can be treated the same way!
@GreenLedgerAccounting7 күн бұрын
@@ClaraCFO Another thing that should be known is how to use due to/from accounts with mixes between two business accounts. It's very useful to know this for people who own more than one business!
@Viviko Жыл бұрын
Oh… So I don’t need to create an entire loan agreement or anything like that. I can just note it down on QB. I’m way overthinking this. Lol.
@ClaraCFO Жыл бұрын
Haha, if you need to establish a long-term payment plan, then maybe a loan agreement might make sense. But if you are just talking about minor expenses here and there, then use my guidance in the video.
@sarab86188 ай бұрын
Hey Clara, was hoping you could help. If I paid off a business CC with personal CC, how do I pay myself back? Do I have to make a category in Liabilities (A/P) with my personal bank account ? Or do I classify the payee as Owner Investment? I'm lost.
@altafhusaen4 ай бұрын
Hi, I would treat it as a loan to Business so I will go with the first option.
@user-of1nt1be6l7 ай бұрын
how do you record a loan from a personal money to the business. because that is not income from the business.
@ClaraCFO7 ай бұрын
Do you want to be repaid? then you would record a LIABILITY (create a new loan account) the journal entry is debit to cash (whatever you are putting into the business) and the credit is the new liability account (named something like "Loan from Owner"). If you do not care to be repaid, then you can make it an equity transaction and it would be considered an owner investment - so you would do the same journal entry, but instead of the credit to the liability, you would credit an "owner equity" account.
@user-ns2lq2rv4y11 ай бұрын
Why wouldn't the owner or employee just file an expense report for reimbursement?
@ClaraCFO11 ай бұрын
if you've put business charges on your personal card, you could do that. Many businesses don't have an expense report process though.
@cottagekeeper5 ай бұрын
How do I record receipts found from 2022 where the owner used their personal card for office supplies? Do I enter a journal entry and use the receipt date of 9/24/2022? I'm concerned this is going to change the P&L and Balance Sheet for 2022.
@ClaraCFO5 ай бұрын
I'd consult your tax accountant on what they'd recommend. Just some thoughts: If it is a small amount, it probably isn't worth trying to record these items now. If it is significant, it could change the taxes owed, and it may make sense to refile the taxes (but that is unlikely). Your CPA may be comfortable booking an entry as of 1/1/2023 for the items, but you'd need to take their recommendation. The business could also pay back the owner in 2024 for these expenses and claim it as a 2024 expense.
@brookegarvey72058 ай бұрын
I'm trying to fix my quickbooks because a lot of personal charges is coming from our business debit card. So every time there's a personal charge... groceries, entertainment, Amazon etc... I would put it under Equity and then owners draws?? I've been cat organizing it this whole time as personal expense in QB :/ no wonder why everything is screwed up.
@user-vu1ci3fb5l5 ай бұрын
Well this just confused me even more because everything I have seen has said that the way you are doing it is the way you should be doing it. Are we not supposed to call that Owner's Draw because it's not business related therefore it would fall under the Owner's Draw account.
@_iErik10 ай бұрын
How does this advice change for a sole proprietor business?
@ClaraCFO10 ай бұрын
It doesn’t at all. You always want to make sure you are separating personal and business expenses
@lisamarr911610 ай бұрын
I always call the account Reimbursable Expense when the business owes money. Is thst not correct?
@ClaraCFO9 ай бұрын
That's an OK way to track it, but you will want to make sure it is zero'd out before the end of the year so it doesn't get accidentally included as a tax deduction.
@noelvisramirezaccounting Жыл бұрын
That sounds beautiful but the clients are a mess and they do what they want they don’t listen to accountants .
@FreeLancerTanzina-wp7ev Жыл бұрын
❤❤❤
@ClaraCFO Жыл бұрын
Thanks 🥰
@ab-qn7kv Жыл бұрын
What about piercing the corporate veil?
@ClaraCFO Жыл бұрын
This would actually help protect you by keeping business and personal separate. Talk to your lawyer if you are concerned about this!
@alexruiz8582 Жыл бұрын
Hey,if I'm the business owner and I write my self a check how should I categorize the check?
@John_GGG Жыл бұрын
It depends on what the check is for.
@lamonteasterjr Жыл бұрын
Simply an owner’s draw if it’s not a reimbursement
@georgesmith9178Ай бұрын
Just as quick advice - structure your videos a bit better. Your explanations are good, but on a few occasions you go back and forth between different ideas, e.g., whether you want to be paid back by the business or your want to give that money as an owner's contribution/draw.
@noelvisramirezaccounting Жыл бұрын
But then when they are audited by the IRS they want god to help them 😂😂😂😂😂😂 . God tell them , you tempted evil (IRS ) 😂😂😂😂. I cannot save you right now .