Tracking Owner-Paid Business Expenses in QuickBooks
Owners often purchase inventory and pay vendors with their own money instead of with the business funds. It is important to encourage business owners to strictly separate their business and personal funds, and to obtain separate business credit cards and bank accounts for purchases. However, if they don’t, accounting professionals need to implement strict accounting procedures to ensure accurate records since it is typically unacceptable to add the owner’s personal checking or credit card accounts to the Chart of Accounts.
Editor’s Note: This is the fifth in a series of 10 tips on improving your productivity in QuickBooks. A new tip will be posted each Wednesday on Intuit® Accountants News Central under “Ways to Be More Productive.”