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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16575
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hi There! I started my LLC Sept 2 2013 and am awaiting approval

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Hi There! I started my LLC Sept 2 2013 and am awaiting approval for a business checking account. How do I account for my business expenses using my personal funds? Do I have to submit bank statements with receipts for reconcile? Or just keep track of receipts and show it as a negative in the beginning?

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

In this scenario, just keep track of the business expenses that you pay with your personal account. Do not have this as a negative figure when you do get your business checking account, because it won't balance

Customer:

So for bookkeeping purposes, I do not enter them into Quickbooks?

Customer:

Such as my business meals, mileage expense, and LLC start-up costs?

Megan C :

No, I wouldn't. I would keep it separate because it's your personal account. If you need to account for the expense, I would credit payable to owner, not a cash account

Megan C :

You'll just carry a liability to yourself. You could pay yourself back once you have your business account separate.

Customer:

Okay so for the month of September, I bill my client first week in October, but do not get paid until first week in December.

Customer:

I would then credit payable to owner the second week in December to receive payout?

Customer:

The second week in December would just be credit payable for meals and office expenses.

Customer:

The mileage expense is more based on IRS stanards.

Customer:

*standards

Megan C :

You would debit your expenses and credit payable to owner when the expense is incurred, not when the customer is billed.

Customer:

Ohhhh. Do I have to break it apart the way QB says...Meals..Mileage..Fuel, etc Or can I just put Credit Payable and a lump sum?

Megan C :

You will make debits to each expense (you will keep the expense separate) but all expenses will be offset by the credit to payable account

Customer:

Okay...sorry for all of the questions. Thank you!

Megan C :

No problem...it's what I'm here for :-)

Megan C :

Is there anything else I can assist you with today?

Customer:

No thank you so much!!

Megan C and 2 other Tax Specialists are ready to help you
Thanks for your positive rating. It was great working with you tonight, Jean. Please come back and ask for me any time you have a question that needs answered.

Thanks!

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