Advertise here    

QuickBooks Forums      

Go Back   QuickBooks Forums > QuickBooks Software Support > Premier Nonprofit Edition Forum

Reply
 
Thread Tools Rating: Thread Rating: 2 votes, 5.00 average. Display Modes
  #1  
Old 11-13-2009, 03:16 PM
catinreno catinreno is offline
Registered User
 
Join Date: Nov 2009
Posts: 7
Question How to pay yourself back for expenses

Hi,

I want to know how do I go about entering receipts for items purchased with personal funds and paying myself (and others who have purchased supplies, etc) for those items now that we have some funding.

I'm using QB Premier - nonprofit 2009. I thought perhaps I need to enter the receipts as bills with each of the persons who purchased those items as the vendor, so that I can pay the bills that have been entered. But I'm not sure if that's the correct way to enter these expenditures.

We are a 501c3 non-profit organization and there are several receipts to enter and not enough monies to cover those expeditures in the account as of yet. But some of the smaller purchases can be paid back and I want to have a place to enter them so that I don't have to go back later on to enter them several months or even a year down the line.

Hope that makes sense...

Any help with this would be greatly appreciated.
Reply With Quote
  #2  
Old 11-13-2009, 11:26 PM
dac7827 dac7827 is offline
Registered User
 
Join Date: Nov 2009
Location: Houston, Texas
Posts: 1
As you approach the "year end" you need to record all transactions related to your business regardless of how it was paid for...

This entry must be "specific". For example if it was paid for by an owner (equity) or officer, or executive (employee on payroll).

Darla
__________________
Darla Krieger
Accountant Consultant
Reply With Quote
  #3  
Old 11-14-2009, 05:43 AM
Joe Williams Joe Williams is offline
Registered User
 
Join Date: Jan 2006
Location: Oklahoma
Posts: 9,379
One way is to create an Other Current Liability account named "Employee loans" and a sub account for each person that purchases things with their money. Then enter a bill to the Vendor and list what purchased and the expense account for that purchase. On the last line, use the Sub account for that person and enter the total of the purchase as a negative amount. The bill how has a Net 0.0 amount and the expenses are recorded and the 'loan' from the employee is increased.
To repay the employee, just write a check to them as the Payee and for the account, use their liability sub account.
__________________
Joe Williams
joewilliams@wavelinx.net
Piedmont, Ok
Reply With Quote
  #4  
Old 11-14-2009, 09:01 AM
LauraD's Avatar
LauraD LauraD is offline
Moderator
 
Join Date: Jun 2006
Location: Rhode Island
Posts: 1,344
Exclamation

This is my procedure for tracking business expenses paid with personal (owner) funds/credit card::

Set up a credit card type account in QuickBooks, calling it "Due to Owner" or "Out of Pocket Expenses". (for "Due to Employee", create a separate account for each employee)

Enter purchases through the 'enter credit card' screen. If you want to track the vendor name, just enter it here.

You can create generic vendors (.Meals & ent, .Gas & auto, etc) for recurrent purchases where you don't need to track the vendor name.

I prefer this method to using a journal entry because -
_Using the cc platform gives you the most detail when you do need a report, etc.

_If you have your preferences set to 'auto-recall last transaction for this name', or have the vendors setup with purchase defaults (v 2008 and following), data entry is easier and more consistent.

_If you have entered a bill into QuickBooks and, then, pay that bill with personal funds, you can go to Pay Bills and, by selecting payment method 'credit card' and that cc account, you can mark that bill as 'paid'.
When the business reimburses these expenses, you can 'write check' to the owner, using the same credit card account in the account field.

At year-end, 'pay' the balance by writing a check, or entering a credit, using an equity account (Current contributions) to zero out the credit card balance. Then, resume using that account beginning the next year.

Laura D
__________________
Laura Dion
Advanced Certified QuickBooks® ProAdvisor
Cents-able Bookkeeping, LLC


♫•*¨•.¸¸.•*¨• I make QuickBooks sing! •*¨*•♫♪ ♪♫

www.centsablebookkeeping.com
Recommending Qbox: http://bit.do/qbox-98
_______________________________

Last edited by LauraD; 11-14-2009 at 11:52 AM.
Reply With Quote
  #5  
Old 11-14-2009, 11:20 AM
catinreno catinreno is offline
Registered User
 
Join Date: Nov 2009
Posts: 7
Thank you everyone for your responses.

I really don't have any formal training in accounting and am having a difficult time understanding what the reponses mean, but I think I understand what Ldion is saying, and I like the idea of being able to have a detailed report.

Darla, I will email you for more info. But I would like to try to go with the option Ldion gave as it sounds fairly simple to me. I should probably pick up an accounting for dummies book so I can familiarize myself with the lingo.

Currently we are a very new non-profit (just celebrated our 1 year anniversary 2 days ago!). But I have receipts dated all the way back to early 2008 that were never entered into QB. In fact, QB wasn't purchased until about 4 months ago. I went back and entered everything else from the opening of the agency, except for the receipts for supplies purchased out of pocket. I didn't know that needed to be there for year end, so I'm hoping this won't be a problem.

Thanks again!!

- Wendy
Reply With Quote
  #6  
Old 11-19-2009, 12:47 PM
David Palmer David Palmer is offline
Registered User
 
Join Date: Feb 2008
Posts: 17
I would set up each "purchaser" as an accounts payable vendor. Then make a list of purchases, total the list and attach the receipts.

You can then write a check or record the expenses and an accounts payable liability for payment in the future.

You can record this as monthly expenses by entering monthly lists.
Reply With Quote
  #7  
Old 01-13-2010, 07:54 PM
catinreno catinreno is offline
Registered User
 
Join Date: Nov 2009
Posts: 7
Quote:
Originally Posted by Joe Williams View Post
One way is to create an Other Current Liability account named "Employee loans" and a sub account for each person that purchases things with their money. Then enter a bill to the Vendor and list what purchased and the expense account for that purchase. On the last line, use the Sub account for that person and enter the total of the purchase as a negative amount. The bill how has a Net 0.0 amount and the expenses are recorded and the 'loan' from the employee is increased.
To repay the employee, just write a check to them as the Payee and for the account, use their liability sub account.
Thank you SOOOOOOOO much Joe. I have to admit, I really didn't understand a word of what you said, but I tried this in a sample QB file, took it step by step and it worked wonderfully!!

Now to set this up and use it in the real file. What I really like about this is that I can still enter it as a bill so I can keep track of the receipts in QB as well as in hard copy. Thanks again!!!

- Catinreno
Reply With Quote
Reply

Bookmarks
Bookmark and Share
Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 06:18 AM.


 

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
All contents copyright (c) by AccountingUsers Inc.
You Rated this Thread: