Recording a Business Expense Paid for w/ Personal Credit Card
Hi all,
I know this has been answered ad nauseam and apologies for asking it again. I've looked at a lot of the previous questions and there seem to be a lot of both use-cases / scenarios and ways of handling it.
I created a new Proprietorship account in Wave (it's an LLC and it appears Corporation was not appropriate). I do not yet have a bank account setup, however I paid for a domain name with my personal credit card, which is not hooked up to Wave in any way and I want to record the expense but as having come from my pocket.
I do not need to be reimbursed.
I originally was going to record the expense as a withdrawal against Owners Investment / Drawings, however I couldn't figure out how the expense would be distinguished from a withdrawal that I might make down the line. And it's not a straight deposit (investment).
So, I ended up following a Quickbooks blog post and created a journal entry that debited against Computer - Hosting, and credited Owner Investment / Drawings.
Was this correct? If not, could someone provide the step by step? What's the easiest way to get that done?
If that was correct (it appears to be), is there any way to add the bill / invoice that I paid to the journal entry? I don't see any way to attach it...
Thank you!
Comments
@bisoldi,
The journal entry you made is fine. Debit the expense and credit Owner Investment. You do not need to create a bill. Bills are use for tracking vendor invoices that are received but not paid.
@Mikeg
Thank you for that!
What is the best way, within wave, to keep a copy of the invoice that I paid associated with the journal entry? Is there no way to do that?
Thanks again.
I do not see the ability to attach any additional files to a Journal Entry. However, a second way of entering items is to use the transaction journal. Click on Add expense, add details (date, description and amount), Be sure to change to the Account to Owner Contribution/Distribution. From there you can attach a receipt.