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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12196
Experience:  Licensed CPA, CFE, CMA 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

Resolved Question:

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?
Submitted: 9 months ago.
Category: Tax
Expert:  Megan C replied 9 months ago.

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, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12196
Experience: Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
Megan C and 4 other Tax Specialists are ready to help you
Expert:  Megan C replied 9 months ago.
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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