Best way to record business expenses paid for with personal funds

Steve176@

I have Quicken personal and business accounts.  The business is new so we are spending from personal funds for supplies, building improvements and other expenses.  I want to track these expenditures but don't think they should be in the business checking account because that's not where they were paid out of.  Would it be acceptable to create a "cash" account and use it to record the expenses?  Nothing else would go in this account, only personally funded business expenses

NotACPA

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Steve176@

NotACPA

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NotACPA

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Sherlock

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As long as you have a Business checking account,  why not occasionally transfer funds from your personal account into the Business account and simply pay all business related expenses out of your Business checking account?

NotACPA

Joe Hutchins said:

As long as you have a Business checking account,  why not occasionally transfer funds from your personal account into the Business account and simply pay all business related expenses out of your Business checking account?

This is unnecessary, since the business under discussion appears to be a Schedule C/E/F affair.

The business, therefore, would be reported on the individuals tax return ... because the individual and the business are a single tax entity.

Also, the OP has already stated that he mixes the accounts that he pays personal and business expenses from ... so your suggestion comes after the horse has already left the barn.

Steve176@

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Steve176@

Joe Hutchins said:

As long as you have a Business checking account,  why not occasionally transfer funds from your personal account into the Business account and simply pay all business related expenses out of your Business checking account?

My basic goal is to be able to run reports from with in Quicken that show all expenses incurred.  Stuff like utilities, taxes, mortgage insurance is all paid out the business checking.  But if I need to order some new light fixtures on Amazon or but a couple of fire extinguishers from the hardware store, I'm going to use a personal credit card or even cash.  I use an accountant not Turbo tax and he works off the reports I'd provide


My plan A was to do this all in SQL Server but that would mean I'd have to create a front end my wife can use or teach her T-SQL.  You can see why I thought Q H/B might be a better option.

NotACPA

Joe Hutchins said:

As long as you have a Business checking account,  why not occasionally transfer funds from your personal account into the Business account and simply pay all business related expenses out of your Business checking account?

Q Home, Business & Rental Property will probably handle what you need ... but, as I suggested above, be sure to assign appropriate Tax Lines to any categories that you use for the business.

Q can then, quite simply, produce the Business reports that you need for your accountant.

Rick Gumpertz

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