Single Member LLC Individual uses a personal credit card only to purchase equipment. How should I categorize payments made to that credit card from the business account?

Member obtained a personal Credit Card to buy equipment, due to a his new business having no credit.  How do I book payments from the business account to his personal account that are used to pay for this credit card/equipment.  This particular card is only used for business equipment.

Answer

First, in QBSE you can not create or post to an asset account for the equipment, nor can you enter depreciation for that equipment.  So there is no way to post the purchase of equipment, unless you expense it totally, and depending on the tax changes for next years filing and what it is, posting to an expense is most likely not the thing to do.

Whether the CC is a personal one or a business one makes no difference, what is important is that the personal card is only used for the business. 

QBSE does not allow for CC type accounts to be created.

he needs to move to QBO or cheaper with more functionality, QB desktop, so the accounting for his business can be done correctly.

QBSE does not allow for any new accounts (categories) to be created
QBSE does not have sales receipts, only invoices
QBSE does not have the class function
QBSE does not do recurring transactions
QBSE does not keep a customer or job listing
QBSE does not have a balance sheet so you can not enter the cost or the depreciation for a car/equipment
QBSE does not do inventory or cost of goods sold
QBSE can not do payroll
QBSE does not do any associated IRS forms, like home office deductions or depreciation
QBSE will not accept a banking file formatted as .qbo (a standard intuit type of file)

QBSE does not do sales tax either (not schedule C related but critical to a business)



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