I got 2 questions this past week both asking about the same issue – how to account for expenses that get paid by the owner out of his/her own pocket.  It’s fairly common for a small business to not have a lot of money in the bank during the start up phase and the owner tends to pay for business expenses on their personal credit cards.   You want to make sure that you get these expenses recorded on the company books and show that the company owes the money back to the owner.  I go over how to record this in QuickBooks and how to record the check when the company finally pays that money back.

This post was written by Michael Debyah.