Comments on: Here We Go! Out-Of-Pocket Expenses (Business Owner) http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/ QuickBooks® Training Tutorials - 10 Minutes at a Time Fri, 23 Jul 2010 01:15:31 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Gabrielle Fontaine http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-202 Gabrielle Fontaine Fri, 23 Jul 2010 01:15:31 +0000 http://qbquicktips.com/blog/?p=22#comment-202 Natalie, Glad it was helpful to you. Yes, the principles would hold true, even though the software works differently. Natalie,

Glad it was helpful to you. Yes, the principles would hold true, even though the software works differently.

]]> By: Natalie http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-197 Natalie Sat, 10 Jul 2010 14:03:08 +0000 http://qbquicktips.com/blog/?p=22#comment-197 Thank you so much. You answered the exact question I was wondering about. Although I use Quicken Home and Business, I was able to apply your answers to this software as well. Thanks again, you were extremely helpful =) Thank you so much. You answered the exact question I was wondering about. Although I use Quicken Home and Business, I was able to apply your answers to this software as well. Thanks again, you were extremely helpful =)

]]> By: Gabrielle Fontaine http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-142 Gabrielle Fontaine Tue, 29 Dec 2009 14:57:27 +0000 http://qbquicktips.com/blog/?p=22#comment-142 Hi Jacob, . Several comments from your first two posts: . 1. Credit card payments using your personal credit card should be treated the same as anything else you pay for out of personal funds; same as if you paid with cash. You will NOT track your personal credit card in your business records. As you mentioned, you would use the same process as shown in the video to capture the amount owed back to you from the business. . 2. In your scenario where you have a bill for $1300, if the initial deposit was paid from personal funds (as shown in the video, capturing the $500 as an expense) before you received the vendor's bill, the deposit should already be credited by the vendor against the bottom line amount owed on that bill. If you are using the A/P function in QuickBooks (Enter Bills / Pay Bills) you should only enter the bill at the bottom line amount owed (since you already recorded the prepayment expense and amount). . If, however, the vendor's bill does not show the deposit amount already paid on their bill, you will need to create a credit for that vendor in the amount you already paid against that bill (in your case, $500), coding it to the same expense account as the prepayment deposit check. . Then, when paying the bill, you will use the Set Credit button to apply that credit against the full bill, and paying the difference ($800) as you described above in your first post. . Do not choose the A/P account as you mentioned in your 2nd post. Let QB do the double-entry bookkeeping for you behind the scenes so that the debits and credits are handled correctly to track your expenses and your liabilities. . Finally, regarding your third post, if you are dealing with foreign currency, you need to be using QB 2009 or 2010, using the foreign currency preference. (Once you turn that feature on, you can never turn it off, btw) As far as what you can and cannot do with the foreign currency is beyond the scope of this post, but if you need further guidance, contact me through my website at http://www.bookkeepingdirect.com/contact.html . Good questions. But just remember to keep things as simple as possible, and you'll do fine. :-) Hi Jacob,
.
Several comments from your first two posts:
.
1. Credit card payments using your personal credit card should be treated the same as anything else you pay for out of personal funds; same as if you paid with cash. You will NOT track your personal credit card in your business records. As you mentioned, you would use the same process as shown in the video to capture the amount owed back to you from the business.
.
2. In your scenario where you have a bill for $1300, if the initial deposit was paid from personal funds (as shown in the video, capturing the $500 as an expense) before you received the vendor’s bill, the deposit should already be credited by the vendor against the bottom line amount owed on that bill. If you are using the A/P function in QuickBooks (Enter Bills / Pay Bills) you should only enter the bill at the bottom line amount owed (since you already recorded the prepayment expense and amount).
.
If, however, the vendor’s bill does not show the deposit amount already paid on their bill, you will need to create a credit for that vendor in the amount you already paid against that bill (in your case, $500), coding it to the same expense account as the prepayment deposit check.
.
Then, when paying the bill, you will use the Set Credit button to apply that credit against the full bill, and paying the difference ($800) as you described above in your first post.
.
Do not choose the A/P account as you mentioned in your 2nd post. Let QB do the double-entry bookkeeping for you behind the scenes so that the debits and credits are handled correctly to track your expenses and your liabilities.
.
Finally, regarding your third post, if you are dealing with foreign currency, you need to be using QB 2009 or 2010, using the foreign currency preference. (Once you turn that feature on, you can never turn it off, btw) As far as what you can and cannot do with the foreign currency is beyond the scope of this post, but if you need further guidance, contact me through my website at http://www.bookkeepingdirect.com/contact.html
.
Good questions. But just remember to keep things as simple as possible, and you’ll do fine. :-)

]]> By: Jacob Gryn http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-138 Jacob Gryn Sun, 27 Dec 2009 04:05:42 +0000 http://qbquicktips.com/blog/?p=22#comment-138 Sorry for the extra comment: How about reimbursing owner for foreign currency purchase? I can't use the amounts owed to owner to pay a foreign currency vendor, and I also can't create a other current liability account in a foreign currency, seems like I need an intermediary step somehow. Sorry for the extra comment:

How about reimbursing owner for foreign currency purchase? I can’t use the amounts owed to owner to pay a foreign currency vendor, and I also can’t create a other current liability account in a foreign currency, seems like I need an intermediary step somehow.

]]> By: Jacob Gryn http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-137 Jacob Gryn Sun, 27 Dec 2009 02:37:47 +0000 http://qbquicktips.com/blog/?p=22#comment-137 Just to follow up. I think I figured it out, but tell me if I'm wrong. If I select "Accounts Payable" as the account, it appears to credit against my balance to the vendor. Just to follow up. I think I figured it out, but tell me if I’m wrong. If I select “Accounts Payable” as the account, it appears to credit against my balance to the vendor.

]]> By: Jacob Gryn http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-136 Jacob Gryn Sun, 27 Dec 2009 02:23:58 +0000 http://qbquicktips.com/blog/?p=22#comment-136 Hi Gabrielle, great video. I have a question now. Lets say I have a vendor bill. I'd like to pay for that with my (the owner's) personal credit card and be reimbursed later. I have tried the method you showed, however, I cannot figure out how to use those funds to credit the bill. Care to suggest something? I'll be more specific, I have a $1300 bill, the $500 deposit I paid from my personal funds, the $800, I paid by company cheque when the invoice was formally provided. It seems that the $800 was applied to the bill, however, that $500, I cannot figure out how to apply it to the bill. Hi Gabrielle, great video.

I have a question now. Lets say I have a vendor bill. I’d like to pay for that with my (the owner’s) personal credit card and be reimbursed later. I have tried the method you showed, however, I cannot figure out how to use those funds to credit the bill. Care to suggest something?

I’ll be more specific, I have a $1300 bill, the $500 deposit I paid from my personal funds, the $800, I paid by company cheque when the invoice was formally provided. It seems that the $800 was applied to the bill, however, that $500, I cannot figure out how to apply it to the bill.

]]> By: Stacy http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-105 Stacy Fri, 23 Oct 2009 16:17:53 +0000 http://qbquicktips.com/blog/?p=22#comment-105 Thank you so much for the great tips! This makes things so much easier and now I can show all my expenses. Thanks again Thank you so much for the great tips! This makes things so much easier and now I can show all my expenses. Thanks again

]]> By: Frank http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-59 Frank Thu, 09 Jul 2009 12:35:50 +0000 http://qbquicktips.com/blog/?p=22#comment-59 Thanks a lot! Thanks a lot!

]]> By: QB QuickTips » Blog Archive » Credit Card Accounts in Quickbooks http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-47 QB QuickTips » Blog Archive » Credit Card Accounts in Quickbooks Mon, 29 Jun 2009 09:07:29 +0000 http://qbquicktips.com/blog/?p=22#comment-47 [...] If you’re wondering about how to record those business charges that were made on your personal credit cards, check out this mini-lesson on paying for business expenses with personal funds [...] [...] If you’re wondering about how to record those business charges that were made on your personal credit cards, check out this mini-lesson on paying for business expenses with personal funds [...]

]]> By: Simply Solar Brisbane Solar Hot water http://qbquicktips.com/blog/short-cuts/here-we-go-out-of-pocket-expenses-business-owner/comment-page-1/#comment-27 Simply Solar Brisbane Solar Hot water Wed, 01 Apr 2009 00:44:51 +0000 http://qbquicktips.com/blog/?p=22#comment-27 Wonderful just saved me heaps of time now off to put in all of my out of pocket expenses...thanks from Fiona Ogilvie on hehalf of Simply Solar Hot Water Brisbane (Australia) Wonderful just saved me heaps of time now off to put in all of my out of pocket expenses…thanks from Fiona Ogilvie on hehalf of Simply Solar Hot Water Brisbane (Australia)

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