Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
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
So for bookkeeping purposes, I do not enter them into Quickbooks?
Such as my business meals, mileage expense, and LLC start-up costs?
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
You'll just carry a liability to yourself. You could pay yourself back once you have your business account separate.
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.
I would then credit payable to owner the second week in December to receive payout?
The second week in December would just be credit payable for meals and office expenses.
The mileage expense is more based on IRS stanards.
You would debit your expenses and credit payable to owner when the expense is incurred, not when the customer is billed.
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?
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
Okay...sorry for all of the questions. Thank you!
No problem...it's what I'm here for :-)
Is there anything else I can assist you with today?
No thank you so much!!