Recording Business Expenses you paid out of your pocket!
QB Question: I am trying to enter all my receipts that I have that are “cash” receipts; like my gas, food, hardware and so forth, but I don't know exactly how to do it. Can someone explain step by step?
Answer:
If you paid for all the expenses out of your pocket and need to record them as business expenses: Setup a new "bank" type of account called something like "Business Expenses Paid Personally"
Use the Write Check window to enter each receipt. Use the new "bank" account at the top. Let the "checks" number themselves; 1,2,3, etc Put the original receipt date in the date field. Leave the Payee blank and enter the name of the receipt on the Memo line (unless the receipt is from a vendor that you DO want to setup and track). Enter your expense account.
Once everything is entered; go to the Chart of Accounts and edit the "bank" type account you setup to make it either:an Equity or Liability type account (talk to your tax man about how he wants to see your initial startup capital).
As always, if you need help or want more information about this process, please call 760-722-6839 or visit http://tinyurl.com/ybg6fy2 and enter "Business Expenses I Paid" in the Additional Comments box and we will contact you.