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Rookie error with personal/business checking

wallfly69wallfly69 Member Posts: 1

I made the mistake of not initially opening up a business account at the beginning. Now that I have one and spending 2 days reconciling all the transactions, I am most confused about how to account for payments towards my business credit card. Prior to me having a business checking account, I have been paying my business credit card in full using my personal checking account.

1) how to do I account for it in Wave?
2) for the equipment I purchased with the business credit card, then later pay off using my personal checking account, how does that reflect as an expense?

in Accounting Technical Support

Comments

  • AlexiaAlexia Member Posts: 3,314 ✭✭✭✭

    Hi, @wallfly69.

    I have good news! It's a pretty simple thing to do. You just have to create an income to your business' credit card for the amount of the payment and categorize it as "Owner's Investment/Drawings", and you're golden.

    If you plan on paying yourself back, you'll just do the opposite. Create an expense from your business bank account (I would assume) categorized as "Owner's Investment/Drawings".

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