I have been watching your videos quite recent in 2023 and i must say they've really been helpful in my Quickbook journey. Thank you so much Mr Hector... your unique voice even makes the experience worth the while
This was extremely helpful as I am currently bogged down in a client's quagmire of co-mingling and wasn't sure how to tackle it. You made what looked complicated into a simple task. Thank you for making these videos! They have been life savers in trying to learn quickbooks online!
Hector, I came just to say, you are awesome. You covered all my questions about this subject. You are a great teacher because you keeping simple, clear and cover all points. Congrats! Thank you for sharing.
Hector, can't thank you enough for taking the time to make your QB videos. As a newly formed small business owner you have helped us so much. From setting up our QB program to various questions I have had while using QB. Your videos are so user friendly and you break down everything so concise. Thanks again!
I always go to you first for all questions! I love how you explain. Follow up question... What if the owner pays with a personal credit card and you need to log the expense to the vendor AND repay the PERSONAL owner's credit card?
@@HectorGarciaCPA Hi Hector, can you please explain this process a little bit more. This is my exact situation and don't understand how to "enter the credit card". I followed the steps on your video but now realize that is not my situation.
Hector, how would I reimburse myself as the owner if I paid with a credit card or my personal banking funds? For example I purchased several items for the business before I had a company card and I don’t want to keep that as an investment, but I rather I need the company to write me a check back for the money I spent.
Same question. I been making deposits from my savings account to my business account to pay for insurance and business cards. How do I get that $ back to me
First you need to increase owners equity in credit side and cash in debit side. Now you need to buy through cash payment. Once you add the company card, just transfer money from bank to your owner's equity.
Hi, here we use owners contrib and owners distrib. Soo be can trace the payments we have to reimburse the owners, and can tell just by seen the balance of the 2 accounts.
What I did in this situation: recorded expenses as usual, but instead of specifying checking or CC account as "paid from" (as i didn't have them at that time), I specified "Due to shareholder" (current liability) account which is basically what company owes to the shareholder. Now I can do a transfer from the company bank to the shareholder's bank as a debt payment
Awesome videos! My son and I started a small business recently and recognized the need for a simple accounting solution. While I didn't realize it when we made the decision to use Quickbooks, it was the best decision ever based on the work you have made available free to me! I can't thank you enough for sharing this information.
Hi Hector, the business is an arcade which brings in plenty cash, so does not use petty cash, but the boss buys hardware supplies and goes to the arcade, who reimburse him cash on the spot..from arcade revenue, the paper expense is given to me and i put the amount into qb as an expense but i do not know what to call the chart of account for this..because say the expense cost $200 - i have to show $200 was supplied from somewhere...but where?!
I forgot to sat thank you for your videos. They're terrific -- even if I do have to play them over and over to absorb all of the information you are so generously providing. :)
Well done Hector! You are by far the most articulate QB professional I have found here. THANK YOU for what you're doing to help me/us in the QBO world. Please keep up the GREAT helpful tutorials!!
Hector, thanks for putting this video as well as so many videos together on how to use QuickBooks. It is incredibly helpful. One comment for improvement is to pause for about 5 seconds between going from one screen to the next. It helps give a viewer time to absorb what you just said before going to the next screen. It does tend to move a little too fast for us beginners. Thanks!
You can hit Pause in TH-cam.. so because of that, i don’t worry about making the videos timed to match the learner’s speed. I prefer people can pause when they need to.
Hello Hector... I really appreciate your video tutorials. I am an S-Corp owner and the bookkeeper and your simple concise instructions are very appreciated.
Hi Hector, Thank you for a great explanation. What if the owner used his personal account to run the business for 6 months and then switch to a business account. How would you process those entries? Add the personal account as a customer and vendor too?
@@HectorGarciaCPA Business owners need to hire a bookkeeper or accountant to do their accounting. Unfortunately some business owners think accounting is simple and they know what they are doing.
Cash from an owner is recorded as Contribution which is an equity account. If they take money out it is recorded in Distributions which is also an equity account. I would not create a fake account …??? Much easier and “truer”. Also, this will give the owner basis on their tax return. Only creating a distribution account- owner money- this reduces basis. They should get credit for contributions as well. This will make a big difference in their tax return.
@hector - great and simple video. This was very helpful to me and my businesses. Question on the video "overlays" that you are doing with the zoom in where you [click] what is that video overlay/motion graphic - it looks very useful?
I pay my business cellphone bill with my personal account. How do I record in quick books? I don’t have enough money in business account to pay for this bill?
Increase your equity account, your cash will be increased too. Pay the bill by cash in hand. Once you have money in business account, transfer it to your equity account to decrease the equity.
Very informative! After entering an expense into the Petty Cash account, how do we move to the next step of reimbursing the owner for money spent for expenses during a given period of time?
Hector, I just found your channel and enjoyed the video on expenses paid in cash. My question relates to a charity. A member loaned money to the charity and would like the loan converted to a charitable donation. Right now the money is entered as a liability, "Loan covered by promissory note". As Treasurer how do I convert that loan to a charitable donation. Thanks for your help.
Hi Hector, in restaurant business, how to record cash that we give tips to our employees , and how to separate these tips that are deposited as sales on our bank account? Thank You
Hector, thank you. I've been making purchases of business needs with my personal credit card, so need to show these as expenses, credits, and liabilities at the same time, right? But now I want to reimburse myself out of the free balance in the corporate bank account--how do I do this so everything balances out at the end of the month and all transactions in the proper accounts?
This is why you don't mix personal with business. If your client has hundreds of transactions, this can get messy real quick. I get so confused with this. Thank you Hector!
Great. It is easy to catch up for a newbie in QB. I have a different scenario. What if we pay cash for inventories where it is payment first (goods not received) and an employee initially pays it. Management had him manage petty cash but, considering the amount of inventory they do not allow to use petty cash account. Can i possibly use advances to suppliers plus advances from employee in this case? how are we going to perform the actual payment in Quickbooks? Appreciate in advance.
I got question sir , what if we have a company and we are two accountant one of us would record the transactions for the current financial Year and the other for the previous years that we haven't record before ... Is it possible to work with two periods in the same account ??
Hector when I am entering personal money paid into the owners money account exactly the same way you did it.. on the vendor register those transactions don’t show up.. how do I get to show up under the vender. It shows on the profit and loss but not under the vendor. The reason I need it under the vendor is because one of the vendors I paid from my personal account but they need a 1099 and it won’t show up inorder to issue the 1099
Good tuition. So the owner paid a deposit on a van before the bank account was set up. Can we use the Patty Cash Account together with the Tangible Assets Account to get this on the book?
Hi Hector! Thanks for your video! Very informative and much appreciated. Wanted to ask you specifically about the cash aspect from our business account (retail store) We have physical receipts for cash expenses for the business but are having trouble figuring out how to sync this from our square(pos) to our quickbooks? What option do we use for trying to catch up? (First year in business) thanks so much
Thats more complicated. I cant help you with that via a YT comment. You can hire an expert from my team to sit down with you and look at all the documents available to show you the process to reconcile petty cash from A cash register.
I do have a question. Instead of writing a check, can I make a transfer from a checking acct to petty cash ? or from merchant deposits can I split the deposit to the bank acct and to petty cash/
If the baggage expense is of business nature then why would reduce the business owner's money. My mind says it's better to write a cheque from checking account against the business owner's account for the replenishment of expense. And later on adjust the petty cash account with that amount. And the question from where petty cash will replenish is simple it comes from business i.e checking account. Can you validate that where I'm going wrong?
How do you match a receipt (sent to QBO via the mobile picture app) to a journal entry added to the "Owners Money" register? (like you do around the 14:10 min mark of this video) QBO is saying "You need to select a different type of account for this transaction" when I try to match the uploaded receipt by saying the amount came out of the "Owners Money" account. Please advise. Thank you!
@@HectorGarciaCPA Gotcha. What's your recommendation for an approach that allows me to save a copy of the original receipt? In this case it is a gas receipt paid for using a personal account.
@@amandajames5676 I am able to click the Journal entry from the Resgister, click edit, and then attach the receipt there. Not sure if this is the recommended approach though.
@@JeffBeagley Jeff, I agree. This is the only way I have found to attach receipts that are not logged using the EXPENSE option. Hoping they make some changes
Wow! So helpful! And covered EVERYTHING I've been struggling with. I just signed up for QB and wish I had seen this so I could have gotten the better discount. Oh well. Anyway, I see above that many users have co-mingled their personal/business accounts and it gets confusing. My boyfriend did that and because he doesn't yet have a business checking, I've put ALL personal expenses in Other Miscellaneous Expenses and tagged them for what they were. Should those be put elsewhere so they don't show up on P/L and balance sheet? Where's the video you made on how to categorize business equipment (either as an expense or as an asset)? Thank you so much for your amazing videos!
Great video!! I have a question..since I just start my company, I been making deposits from my savings account to my business account to pay for insurance and business cards. How do I get that $ back to me??.I hope you can answer. Thanks
This guy is the best. My question before ruining into these tutorials is: Why bean counters and bookies make accounting look like it’s the equivalent to splitting the atom? Or going to mars🤣
Regarding Cash App. When you don’t cash out the funds to your banking account , but instead the funds in cash app are used to pay bills. So we have two issues: The bank is not recognizing the revenue and the expenses. What is the best way to record these entries in quickbooks
Hi Hector! I have a family business and wanted to know if the above video is also good for when my boys buy equipment to resell and I need to reimburse them when the equipment is sold. Please advise who to proceed. Thanks! love you videos very
Hector - when I record an expense that an employee or owner makes from their personal bank account, I generally record it as an "Employee Reimbursement" - the payee is the employee or owner and the category is Employee Reimbursement and my notes and attachments indicate where the purchase was made and for what as well as indicating if it was billable or billed to a customer project - is this incorrect? All of my employee or owner personal expenses are done this way in our Quickbooks - HELP!!!!
You always make it clear and concise! However, what if you have cash that comes into the company that was intended to be deposited in the bank account for a different category other than Petty Cash and now being used as Petty Cash? Cash didn't make it to the bank. Petty Cash was previously had a zero balance and reconciled. How would you record?
If the owner paid $100 for excess baggage from his pocket and we use the petty case account to record it (Travel), isn't the owner entitled to a "Investment" of his own money in the Equity account Owner's Money?
Hi, thanks for your videos!!! They are very helpfull. I have a situation in between the contrib/distrib situation it self. The previous bookeeper was using the distribution account for reimburse and also for money the owners took from the company. I in my hand woul like to do it using dividens payable and then dividens. Dividens payable is a liability, but how i set the dividens the company pays? TIA
first of all, THANK YOU FOR YOUR HELP!!! now, question is what i paid for a cell phone monthly service with my own personal credit card. do i record that as an expense or pay bill or bill? because i actually paid it for many months under my personal credit card not my business card. MUCHISIMAS GRACIAS!
Thank you for this I funded my entire business with my own money should I create a ledger for all of my transactions? its over 1200 transactions with -35k in expenses
@@robyiaspriggins1978 you can create a bank account called “owners personal account” and put all the expenses there. Then adjust against equity (the same way its explained in the video)
Thanks Hector! How would I make an entry of reimbursement of a loan from owner's personal account? I took the loan to purchase a business vehicle, do I need to make an entry as fixed entry?
How do you record cash app entries that was not cash out to your bank account for that month of activity. Should I create petty cash so I can have an accurate expense and income on profit and loss statement. In some case the money that was sitting in cash app was used to pay expenses. Help!!!
Hector, one more question. Does the owner's money account always have to be at $0? Is it okay to leave it in a minus or positive state? Same question for petty cash. Thank you so much for your videos. They are awesome! I already know a lot about Quickbooks. I'm just rusty, and you are getting into more details so you are really helping.
Thank you for these videos. What I get paid in cash for an invoice and I don't deposit it and keep it on hand. I have been recording it as cash on hand...but it is showing up on my reconcile report under my chequing account? I think I am doing something wrong.
Is Owner's Money an alternative to have two separate accounts: Owner's Contributions and Owner's Distributions? I was under the impression they had to be separated.
@@HectorGarciaCPA I was thinking about something last night. I have started a business about 3 years ago using equipment that i have owned before that. Do you have a video on how to manage existing / depreciate assets in QB? EX: i have camera, paid 3k for it. 3 years ago. How do i track that? Sorry for the stupid questions. i did the research i didn't find a clear explanation / instructions like you do. Thank you in Advance.
Is the petty cash to be at 0.00 at all times? The owner just takes the cash and does whatever he wants with it. I can manage the sales received in cash and some of the receipts he paid but the rest goes is unaccounted for
my petty cash has a running negative balance, how can i enter a transaction that shows the owner had actually loaned petty cash a large sum of money from the beginning of time, so that negative balance and any future balances are not negative.
I have repeated the steps several times and everything matches up. However, when I get to the step with using Owner's Money to purchase a laptop my ending balance always comes out -$2500 even when I put it in the increase column. Why is this? What am I doing wrong?
As the owner of the account I have to switch to accountant View to create this account in chart accounts? Also I only have basic QuickBooks online. I do not want to link my personal bank account to QuickBooks neither
Hola Hector, maybe this is an old video but now in QBO we have cash and cash equivalents. Do I still need to make a petty cash acc or cash on hands and that still need to be as bank acc. I was using cash and cash equivalents for cash on hand
Hi Hector, my name is Stacy. I have cash transactions that I don’t know how to clear them. My boss will buy lunch for the office and pays cash. When I add the expense in quickbooks they never get cleared specifically when I reconcile the bank. How do I clear them.
Hi Hector, I had a friend issue me a refund via Zelle for a damaged necklace that deposited to my business checking but was originally a personal bank purchase. I don’t want this to affect my P&L, how can I fix this and deposit back to my personal checking account?
Hi, in bank transaction for review, a loan from officer was entered as an expense can I just exclude/delete it and make a journal entries to payable to officer since it was paid already so i can match them..thank you.. newbie here in qbo
Hello Hector. I have a supplier that makes two kinds of deposit in my business account, one for the products I bought, and another deposit for FBA preparations (Amazon concept). So, I need the banking rule for categorizing the same supplier with different deposits.
Hector, thank you so much for these videos. I have been booking using Quickbooks and I do use the cash category. How do I keep track though of what happens to the rest of the party cash? Do I just awesome that it goes back to the owner? The owner gives me receipts of cash purchases and sometimes they are made with credit cards. However, in Quickbooks I only have the business checking account linked so any another way of purchases are keyed in cash category.
Great video! My employee use his money to buy things for business, should I set up an account called Due to Third Parties to record the loan? Later when I write a check to him, in the category section, I still use the Due to Third Parties account to reimburse him? Thanks!
Can you suggest a video or document that can explain how I can track an expense, from a vendor, whom already charged me tax? (Lump sum invoice from vendor)
Maybe I did not explain that correctly. If I make a purchase, of materials or supplies for the company(my company) but do not use the business acct (or CC) and am charged tax from the establishment I purchased from, how do I input this correctly into QB. Some other videos suggest Expense>check>eft
Two questions: 1) When I match my Square transactions, those transactions still appear on the list. Why? 2) On Square, they don't reveal the name of some of my clients. How do I know who paid to credit in QuickBooks?
how would you record an expense that someone else (not an owner or shareholder) paid for the business (i guess you can say as a loan) then the business paid this person back with Petty Cash
I have been watching your videos quite recent in 2023 and i must say they've really been helpful in my Quickbook journey. Thank you so much Mr Hector... your unique voice even makes the experience worth the while
Great
This was extremely helpful as I am currently bogged down in a client's quagmire of co-mingling and wasn't sure how to tackle it. You made what looked complicated into a simple task. Thank you for making these videos! They have been life savers in trying to learn quickbooks online!
Hector, I came just to say, you are awesome. You covered all my questions about this subject. You are a great teacher because you keeping simple, clear and cover all points. Congrats! Thank you for sharing.
Thanks :)
You're very good. This should have been two videos. By the time I got to the personal expense from another credit card my brain was frying.
I know... sorry
3yrs old and still saved my day! Def will check out your courses!
Hector, can't thank you enough for taking the time to make your QB videos. As a newly formed small business owner you have helped us so much. From setting up our QB program to various questions I have had while using QB. Your videos are so user friendly and you break down everything so concise. Thanks again!
Glad you like them!
I always go to you first for all questions! I love how you explain. Follow up question... What if the owner pays with a personal credit card and you need to log the expense to the vendor AND repay the PERSONAL owner's credit card?
Enter the credit card and just enter the business expenses.. you won’t reconcile it at zero once it’s paid off
@@HectorGarciaCPA Hi Hector, can you please explain this process a little bit more. This is my exact situation and don't understand how to "enter the credit card". I followed the steps on your video but now realize that is not my situation.
I would write a zero expense, first line with positive expense amount, second line negative amount to owners equity.
That’s also possible
Hector, how would I reimburse myself as the owner if I paid with a credit card or my personal banking funds? For example I purchased several items for the business before I had a company card and I don’t want to keep that as an investment, but I rather I need the company to write me a check back for the money I spent.
Same question. I been making deposits from my savings account to my business account to pay for insurance and business cards. How do I get that $ back to me
First you need to increase owners equity in credit side and cash in debit side. Now you need to buy through cash payment. Once you add the company card, just transfer money from bank to your owner's equity.
Hi, here we use owners contrib and owners distrib. Soo be can trace the payments we have to reimburse the owners, and can tell just by seen the balance of the 2 accounts.
What I did in this situation: recorded expenses as usual, but instead of specifying checking or CC account as "paid from" (as i didn't have them at that time), I specified "Due to shareholder" (current liability) account which is basically what company owes to the shareholder. Now I can do a transfer from the company bank to the shareholder's bank as a debt payment
Awesome videos! My son and I started a small business recently and recognized the need for a simple accounting solution. While I didn't realize it when we made the decision to use Quickbooks, it was the best decision ever based on the work you have made available free to me! I can't thank you enough for sharing this information.
Hi Hector, the business is an arcade which brings in plenty cash, so does not use petty cash, but the boss buys hardware supplies and goes to the arcade, who reimburse him cash on the spot..from arcade revenue, the paper expense is given to me and i put the amount into qb as an expense but i do not know what to call the chart of account for this..because say the expense cost $200 - i have to show $200 was supplied from somewhere...but where?!
From revenue
I forgot to sat thank you for your videos. They're terrific -- even if I do have to play them over and over to absorb all of the information you are so generously providing. :)
:)
Well done Hector! You are by far the most articulate QB professional I have found here. THANK YOU for what you're doing to help me/us in the QBO world. Please keep up the GREAT helpful tutorials!!
My pleasure!
Hector, thanks for putting this video as well as so many videos together on how to use QuickBooks. It is incredibly helpful. One comment for improvement is to pause for about 5 seconds between going from one screen to the next. It helps give a viewer time to absorb what you just said before going to the next screen. It does tend to move a little too fast for us beginners. Thanks!
You can hit Pause in TH-cam.. so because of that, i don’t worry about making the videos timed to match the learner’s speed. I prefer people can pause when they need to.
Hello Hector... I really appreciate your video tutorials. I am an S-Corp owner and the bookkeeper and your simple concise instructions are very appreciated.
Great!
Hi Hector,
Thank you for a great explanation. What if the owner used his personal account to run the business for 6 months and then switch to a business account. How would you process those entries? Add the personal account as a customer and vendor too?
Yes I would. The personal account could be the petty cash account or the equity account. The people/businesses you pay, those would be vendors
@@HectorGarciaCPA Business owners need to hire a bookkeeper or accountant to do their accounting. Unfortunately some business owners think accounting is simple and they know what they are doing.
Excellen Hector, I had done it using an unpaid deposit account, but is better to increase the owners equity
Yeap
Cash from an owner is recorded as Contribution which is an equity account. If they take money out it is recorded in Distributions which is also an equity account. I would not create a fake account …??? Much easier and “truer”. Also, this will give the owner basis on their tax return. Only creating a distribution account- owner money- this reduces basis. They should get credit for contributions as well. This will make a big difference in their tax return.
Hector --- ive watched several QBs tutorials - YOU are the best...thank you Sir!
Thanks, glad you like them
I am very new to QBO, you are a lifesaver!!
Thank you! happy to help!
@hector - great and simple video. This was very helpful to me and my businesses. Question on the video "overlays" that you are doing with the zoom in where you [click] what is that video overlay/motion graphic - it looks very useful?
Its a Mac function
I pay my business cellphone bill with my personal account. How do I record in quick books? I don’t have enough money in business account to pay for this bill?
The video shows how to enter expense paid from a personal account… its literally the main theme of the video
Increase your equity account, your cash will be increased too. Pay the bill by cash in hand. Once you have money in business account, transfer it to your equity account to decrease the equity.
Very informative! After entering an expense into the Petty Cash account, how do we move to the next step of reimbursing the owner for money spent for expenses during a given period of time?
Write a check to the owner.. categorize as “Petty Cash” so that account will be zeroed out
Hello Hector, I'm wondering how to handle reimbursement to employees for expenses they pay out of their own pocket?
Hector, I just found your channel and enjoyed the video on expenses paid in cash. My question relates to a charity. A member loaned money to the charity and would like the loan converted to a charitable donation. Right now the money is entered as a liability, "Loan covered by promissory note". As Treasurer how do I convert that loan to a charitable donation. Thanks for your help.
Change the category to “Donation Expense”
Hi Hector, how to change the financial/accounting year in qb and how to claim VAT On owners investment?
I dont work with VAT sorry
@@HectorGarciaCPA Ok thanks Hector, is there any way to change financial year of company in qb?
Do you have a video that shows how to enter business income that was deposited into a personal checking account?
No
Hi Hector, in restaurant business, how to record cash that we give tips to our employees , and how to separate these tips that are deposited as sales on our bank account? Thank You
You need to record “Tips Income” and “Tips Wages Expense” in a journal entry
Hector, I have been a fan of yours, may I ask why not immediately post to owners money instead of petty cash?
Because some times people prefer a register with that history with natural transactions and not Journal Entries
Hector, thank you. I've been making purchases of business needs with my personal credit card, so need to show these as expenses, credits, and liabilities at the same time, right? But now I want to reimburse myself out of the free balance in the corporate bank account--how do I do this so everything balances out at the end of the month and all transactions in the proper accounts?
This video explains all that
This is why you don't mix personal with business. If your client has hundreds of transactions, this can get messy real quick. I get so confused with this. Thank you Hector!
Yeap… they make a mess
Great. It is easy to catch up for a newbie in QB. I have a different scenario. What if we pay cash for inventories where it is payment first (goods not received) and an employee initially pays it. Management had him manage petty cash but, considering the amount of inventory they do not allow to use petty cash account. Can i possibly use advances to suppliers plus advances from employee in this case? how are we going to perform the actual payment in Quickbooks? Appreciate in advance.
I got question sir , what if we have a company and we are two accountant one of us would record the transactions for the current financial Year and the other for the previous years that we haven't record before ... Is it possible to work with two periods in the same account ??
Hector when I am entering personal money paid into the owners money account exactly the same way you did it.. on the vendor register those transactions don’t show up.. how do I get to show up under the vender. It shows on the profit and loss but not under the vendor. The reason I need it under the vendor is because one of the vendors I paid from my personal account but they need a 1099 and it won’t show up inorder to issue the 1099
You need it to come from a bank account
@@HectorGarciaCPA so how do you do that if it’s a personal card used before business started ?
Did I miss something? I did not see your explanation for when an employee spends his or her personal funds for business expenses.
Good tuition. So the owner paid a deposit on a van before the bank account was set up. Can we use the Patty Cash Account together with the Tangible Assets Account to get this on the book?
I would use the Owner's Money account (as described by Hector) or the Owner's Equity account and treat this as an investment in the company.
I’m struggling to figure out how to do Owner Reimbursements to the Owners personal checking, where the expense came from. The expense is recorded.
Did you get an answer to this? I'm looking for the same thing?
Hi Hector! Thanks for your video! Very informative and much appreciated. Wanted to ask you specifically about the cash aspect from our business account (retail store) We have physical receipts for cash expenses for the business but are having trouble figuring out how to sync this from our square(pos) to our quickbooks? What option do we use for trying to catch up? (First year in business) thanks so much
Thats more complicated. I cant help you with that via a YT comment. You can hire an expert from my team to sit down with you and look at all the documents available to show you the process to reconcile petty cash from
A cash register.
I do have a question. Instead of writing a check, can I make a transfer from a checking acct to petty cash ? or from merchant deposits can I split the deposit to the bank acct and to petty cash/
If the baggage expense is of business nature then why would reduce the business owner's money. My mind says it's better to write a cheque from checking account against the business owner's account for the replenishment of expense. And later on adjust the petty cash account with that amount. And the question from where petty cash will replenish is simple it comes from business i.e checking account. Can you validate that where I'm going wrong?
Thanks for teaching your classes so well.
How do you match a receipt (sent to QBO via the mobile picture app) to a journal entry added to the "Owners Money" register? (like you do around the 14:10 min mark of this video)
QBO is saying "You need to select a different type of account for this transaction" when I try to match the uploaded receipt by saying the amount came out of the "Owners Money" account. Please advise. Thank you!
It can’t be assigned to a journal entry I think.
@@HectorGarciaCPA Gotcha. What's your recommendation for an approach that allows me to save a copy of the original receipt? In this case it is a gas receipt paid for using a personal account.
@@amandajames5676 I am able to click the Journal entry from the Resgister, click edit, and then attach the receipt there. Not sure if this is the recommended approach though.
@@JeffBeagley Jeff, I agree. This is the only way I have found to attach receipts that are not logged using the EXPENSE option. Hoping they make some changes
You saved the Best By as a customer ! It Should be VENDOR
but what about if I used my personal debit card to pay? if there a video on that?
Its the same as “paid in cash”
Wow! So helpful! And covered EVERYTHING I've been struggling with. I just signed up for QB and wish I had seen this so I could have gotten the better discount. Oh well. Anyway, I see above that many users have co-mingled their personal/business accounts and it gets confusing. My boyfriend did that and because he doesn't yet have a business checking, I've put ALL personal expenses in Other Miscellaneous Expenses and tagged them for what they were. Should those be put elsewhere so they don't show up on P/L and balance sheet? Where's the video you made on how to categorize business equipment (either as an expense or as an asset)? Thank you so much for your amazing videos!
I need to know this as well
Hello Hector,
Thank you so much.
However, I would love to know how to go about the same issue using QB desktop version?
Same exact process
talked about if the owner used a personal credit card instead of cash but never explained that example. Is it the same process?
Same exact process
As always, you are giving juicy information in every topic about QBO. Thank you.
Great video!! I have a question..since I just start my company, I been making deposits from my savings account to my business account to pay for insurance and business cards. How do I get that $ back to me??.I hope you can answer.
Thanks
I likewise have the same question... for personal funds use that you want to be reimbursed... ie a payable to myself.
@@othnielmaidaniuc1786 would love an answer to this as well
This guy is the best. My question before ruining into these tutorials is: Why bean counters and bookies make accounting look like it’s the equivalent to splitting the atom? Or going to mars🤣
Regarding Cash App.
When you don’t cash out the funds to your banking account , but instead the funds in cash app are used to pay bills.
So we have two issues:
The bank is not recognizing the revenue and the expenses.
What is the best way to record these entries in quickbooks
Cashapp needs to be its own bank account
hello Hector, why you chose sales reciepts and not receive payments when you posted the petty cash
Either one works.. “receive payments is only for when an invoice already exists”
How to show on qb if I sent from business to personal some money, that I used some of to business some for personal?
Just enter the business expenses in the clearing account as per the video
Hi Hector! I have a family business and wanted to know if the above video is also good for when my boys buy equipment to resell and I need to reimburse them when the equipment is sold. Please advise who to proceed. Thanks! love you videos very
Reimbursements are different.
But where we see the taxable bifurcation????
Not sure
How to use Quickbook online, for used Quick book desktop used to journal entry for Non government organization ?
Cant follow
Hector muy buenas tardes tengo una preguntita usted da clases en privado?
Yo no, pero mi oficina si. QBKAccounting.com
Thanks for update. How do you conduct payable reconciliation
How do I configure my QBO Accounting tab? Mine does not have it
Some files dont have it
Say I'm trying to create a 1099 but the contractors were paid outside of Quickbooks. I assume I would start with this?
Yes. You gave to write then a check from a cash/bank account as shown here
Pero si el cash lo tomaron del cash del restaurant y lo ponen en el sistema de focus como paid outs? como lo registras?
Hector - when I record an expense that an employee or owner makes from their personal bank account, I generally record it as an "Employee Reimbursement" - the payee is the employee or owner and the category is Employee Reimbursement and my notes and attachments indicate where the purchase was made and for what as well as indicating if it was billable or billed to a customer project - is this incorrect? All of my employee or owner personal expenses are done this way in our Quickbooks - HELP!!!!
You always make it clear and concise! However, what if you have cash that comes into the company that was intended to be deposited in the bank account for a different category other than Petty Cash and now being used as Petty Cash? Cash didn't make it to the bank. Petty Cash was previously had a zero balance and reconciled. How would you record?
It needs to be deposited into the petty cash and the expenses, what it was used for is recorded in that account.. just like the video
If the owner paid $100 for excess baggage from his pocket and we use the petty case account to record it (Travel), isn't the owner entitled to a "Investment" of his own money in the Equity account Owner's Money?
Equity account
Can we use sales order receipts to bookkeep local purchases in cash? When buying from an individual say on Facebook.
No, you use the Expenses transaction to record that kind of purchase, exactly how its explained here
Hi, thanks for your videos!!! They are very helpfull.
I have a situation in between the contrib/distrib situation it self. The previous bookeeper was using the distribution account for reimburse and also for money the owners took from the company. I in my hand woul like to do it using dividens payable and then dividens. Dividens payable is a liability, but how i set the dividens the company pays? TIA
first of all, THANK YOU FOR YOUR HELP!!! now, question is what i paid for a cell phone monthly service with my own personal credit card. do i record that as an expense or pay bill or bill? because i actually paid it for many months under my personal credit card not my business card. MUCHISIMAS GRACIAS!
As an expense from that “owner’s personal cash” account
Do I add the owner as a vendor or customer or employee? Or does it matter?
vendor
Thank you for this I funded my entire business with my own money should I create a ledger for all of my transactions? its over 1200 transactions with -35k in expenses
Hector you didn’t answer the question Hermano. 😇
@@robyiaspriggins1978 you can create a bank account called “owners personal account” and put all the expenses there. Then adjust against equity (the same way its explained in the video)
Thanks Hector! How would I make an entry of reimbursement of a loan from owner's personal account? I took the loan to purchase a business vehicle, do I need to make an entry as fixed entry?
Great video Hector as usual! Not sure what I would do without you.
:)
How do you record cash app entries that was not cash out to your bank account for that month of activity. Should I create petty cash so I can have an accurate expense and income on profit and loss statement.
In some case the money that was sitting in cash app was used to pay expenses.
Help!!!
Needs to be its own bank account
How do I reimburse the owner for supplies or auto expenses (fuel) and record the transaction?
Just write them a check
@@HectorGarciaCPA Thank you very much.
When you are creating a check the check number you put in is it just a random number or is there a system on how you pick it
My own
Hector, one more question. Does the owner's money account always have to be at $0? Is it okay to leave it in a minus or positive state? Same question for petty cash. Thank you so much for your videos. They are awesome! I already know a lot about Quickbooks. I'm just rusty, and you are getting into more details so you are really helping.
Thank you for these videos. What I get paid in cash for an invoice and I don't deposit it and keep it on hand. I have been recording it as cash on hand...but it is showing up on my reconcile report under my chequing account? I think I am doing something wrong.
Is Owner's Money an alternative to have two separate accounts: Owner's Contributions and Owner's Distributions? I was under the impression they had to be separated.
Naaa.. they are the same essentially
Here is where im stuck. I want to buy an asset from lets say Offer Up or Craigslist and the want cash. How would you track that transaction?
Put the payment/deposit into that petty cash account
@@HectorGarciaCPA I was thinking about something last night. I have started a business about 3 years ago using equipment that i have owned before that. Do you have a video on how to manage existing / depreciate assets in QB? EX: i have camera, paid 3k for it. 3 years ago. How do i track that? Sorry for the stupid questions. i did the research i didn't find a clear explanation / instructions like you do. Thank you in Advance.
Is the petty cash to be at 0.00 at all times? The owner just takes the cash and does whatever he wants with it. I can manage the sales received in cash and some of the receipts he paid but the rest goes is unaccounted for
Jose Lopez then yes, make it zero against equity
@@HectorGarciaCPA eres grande! Tnx a lot
my petty cash has a running negative balance, how can i enter a transaction that shows the owner had actually loaned petty cash a large sum of money from the beginning of time, so that negative balance and any future balances are not negative.
I have repeated the steps several times and everything matches up. However, when I get to the step with using Owner's Money to purchase a laptop my ending balance always comes out -$2500 even when I put it in the increase column. Why is this? What am I doing wrong?
Hard to tell without looking at it
As the owner of the account I have to switch to accountant View to create this account in chart accounts? Also I only have basic QuickBooks online. I do not want to link my personal bank account to QuickBooks neither
No. You can create them in business view as well
@@HectorGarciaCPA okay also would I have to create a journal entry instead of doing this?
Hola Hector, maybe this is an old video but now in QBO we have cash and cash equivalents. Do I still need to make a petty cash acc or cash on hands and that still need to be as bank acc. I was using cash and cash equivalents for cash on hand
Its the same as “bank”
love u r teaching Hector....❤❤
Hi Hector, my name is Stacy. I have cash transactions that I don’t know how to clear them. My boss will buy lunch for the office and pays cash. When I add the expense in quickbooks they never get cleared specifically when I reconcile the bank. How do I clear them.
I would have to look at it. The answer might not be an obvious one
You are amazing teacher Hector. Thank you very much
You are welcome
What will be double entry for this transaction..... I am so confused as I have no idea how we are DR EXPENSES (Petty Cash) and CR Owners equity....
Hi Hector, I had a friend issue me a refund via Zelle for a damaged necklace that deposited to my business checking but was originally a personal bank purchase. I don’t want this to affect my P&L, how can I fix this and deposit back to my personal checking account?
when we received a check but rejected for insaficient balance now how to add this check as a expense ? could you please tell me ...
Whatever category you use, use the same when the check comes back to net it out
@@HectorGarciaCPA Thank you very much
So, would this process be the same if the owner used their personal credit card to pay for business expenses?
Yes... and just reimburse the owner at some point
Hi, I am sooo stumped rn. I received a refund half in cash and the other half a credit card credit. How would I enter this in QBO?
Cash goes into your bank or petty cash account and the credit card credit on the credit card account
@@HectorGarciaCPA Thank you, how do I enter the cash into the petty cash account? I am new to this!
Hi, in bank transaction for review, a loan from officer was entered as an expense can I just exclude/delete it and make a journal entries to payable to officer since it was paid already so i can match them..thank you.. newbie here in qbo
Thats possible, or reclassify it
Hello Hector. I have a supplier that makes two kinds of deposit in my business account, one for the products I bought, and another deposit for FBA preparations (Amazon concept). So, I need the banking rule for categorizing the same supplier with different deposits.
Hector, thank you so much for these videos. I have been booking using Quickbooks and I do use the cash category. How do I keep track though of what happens to the rest of the party cash? Do I just awesome that it goes back to the owner? The owner gives me receipts of cash purchases and sometimes they are made with credit cards. However, in Quickbooks I only have the business checking account linked so any another way of purchases are keyed in cash category.
You need to into the check register for the petty cash
sir how i will start as new accounting student
Great video! My employee use his money to buy things for business, should I set up an account called Due to Third Parties to record the loan? Later when I write a check to him, in the category section, I still use the Due to Third Parties account to reimburse him? Thanks!
Yes that works.. or wait until you pay him and just better the expense category in the reimbursement check
Can you suggest a video or document that can explain how I can track an expense, from a vendor, whom already charged me tax? (Lump sum invoice from vendor)
The tax should be included in the cost
Maybe I did not explain that correctly.
If I make a purchase, of materials or supplies for the company(my company) but do not use the business acct (or CC) and am charged tax from the establishment I purchased from, how do I input this correctly into QB. Some other videos suggest Expense>check>eft
I am uncertain how this type of purchase is tracked and furthermore, how this expense correlates to my tax liability (positive or negative impact)
My question is how do you record daily sales for a Restaurant into QBO?
It is on the advanced QBO ProAdvisor training
Two questions: 1) When I match my Square transactions, those transactions still appear on the list. Why? 2) On Square, they don't reveal the name of some of my clients. How do I know who paid to credit in QuickBooks?
how would you record an expense that someone else (not an owner or shareholder) paid for the business (i guess you can say as a loan) then the business paid this person back with Petty Cash
Create it as a credit card.