How do i categorize a personal purchase on a business credit card? (2024)

‎October 15, 201806:22 PM

I understand i should not mix personal and business accounts. I plan on rectifying this in the future. I am a sole proprietor. I occasionally make personal purchases with the business credit card. I pay the business credit card with the business checking account. How do i categorize the personal purchase? Should i exclude the personal transaction? I just set up an owners equity draw account. Do i add it to owners draw account or transfer it to owners draw account? Is there a difference between adding it or transferring it?

• QuickBooks Online

Raywhite28

It's an owners draw.

It shouldn't matter.

Owner Draw is an equity account but QuickBooks won't auto create it. Add it new. Personal Expense might be set up as equity nut should not have expense in its name as it is not an expense for the business.

By any chance are you using Self-employed, not a full QBO? It is the only QB product where you cannot edit your Chart of accounts

Where you able to figure this out?

I just upgraded to QB online from self employed. I'm also having a hard time categorizing a personal expense on a business cc and paying the cc from a business checking account.

We thank you for choosing QuickBooks, @Miguel Alva.

Allow me to help you categorize a transaction in your account.

You should record in QuickBooks whenever you usea business account to pay for a personal expense. Then you can reimbursethe company.

Here's how you can record a personal expense:

1. Select+New.
2. ChooseCheckorExpense.
3. Select aPayeefrom the drop-down ▼.
4. Select the Accountyou used to make the purchase.
5. Select the tax category that fits your need.
6. Enter theAmount.
7. SelectSave and closeorSave and new.

Please review this article for the detailed steps:Pay for personal expenses from a business credit card or bank account.

Just leave a comment if you have further questions. Have a nice day!

What if I have linked my credit card. The transaction shows up as Credit Card Expense. I need to add a trnasaction that shows it as owner's draw also. Currently I added the category owner's draw to the transaction with the payee as credit card. How can I handle this.

Thank you,

I'd be please to help you add a transaction showing as owner's draw in QuickBooks Online,Encuaccounts.

To enter a transaction showing as owner's draw, you can write a check or an expense transaction. Here's how:

1. Click+New and chooseCheckorExpense.
2. Choose aPayeefrom the drop-down ▼ menu.
3. Select theBank Accountyou used to make the purchase.
4. In theCategorydetails section, select the drop-down menu ▼ to select the tax category that fits your need.
5. Enter theAmount.
6. SelectSave and close.

Once done, you can follow and proceed to Step 2 in this article to reimburse the company:Pay for personal expenses from a business credit card or bank account.

You might want to visit this write-up:Mixing business and personal funds. This will give you scenarios and links for the step-by-step process of handling personal funds in QuickBooks Online.

Feel free to drop me a line if you have any other QuickBooks concerns. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

Hi John,

I have a question regarding how to reverse a transaction because the business Amex was used to pay for a dentist appointment and need to figure out how to undo this I see the examples that are in the forum but they do not match what I'm trying to do. I have attached a screenshot of what displays for me in chart of accounts to create a new one but not sure if the information I entered is correct. I would really apricate your help.

Thanks,

Leena