How to Record Personal Expenses and Owner Draws in QuickBooks Online
Welcome back! In today’s post, we will guide you through the process of recording personal expenses and owner draws using QuickBooks Online. These steps are straightforward and will help you maintain accurate financial records.
Recording Personal Expenses
To get started with recording personal expenses in QuickBooks Online, follow these steps:
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Sign into Your QuickBooks Online Account: Begin by logging into your account. Once you are on the dashboard, you’ll be able to access all features.
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Navigate to the Plus New Button: Look for the "+ New" button located at the top left corner of your dashboard. Click on it to open a dropdown menu.
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Select ‘Expense’: From the dropdown menu, choose ‘Expense’ to start the recording process.
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Fill in Expense Details: Once you’re on the expense form, complete the necessary fields such as:
- Payee: Enter the name of the person or organization to whom the expense was paid.
- Payment Account: Select the account used to make the payment.
- Payment Date: Enter the date when the expense occurred.
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Choose the Category: In the category field, select ‘Owner’s Equity’ or any similar account you use for personal expenses.
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Enter Amount and Additional Details: Input the amount spent and include any relevant notes or additional details.
- Save Your Expense: After filling in all the fields, click on the ‘Save and Close’ button to record the expense.
Recording Owner Draws
Now let’s move on to recording owner draws. Here’s how to do it:
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Click on the Plus New Button Again: Return to the "+ New" button and click on it once more to open the dropdown menu.
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Select ‘Transfer’: In the dropdown, choose ‘Transfer’ to initiate the process of recording your owner draw.
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Enter Transfer Details:
- Transfer Funds From: In this field, select the bank account from which the draw is taken.
- Transfer Funds To: Here, choose ‘Owner’s Equity’ or a similar account for recording the draw.
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Input Amount and Additional Details: Enter the amount of the draw and add any necessary details or notes to specify the nature of the draw.
- Save the Transfer: Once all information is entered, click on ‘Save and Close’ to finalize the transaction.
Conclusion
And that’s it! You have now successfully recorded both personal expenses and owner draws in QuickBooks Online. This will help you keep your financial records accurate and organized. If you found this tutorial helpful, please like and subscribe to our channel for more informative content. Thanks for reading!
