Paying bills

Posted by testforbc on October 11, 2008, 2:24 pm

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We pay most of our bills on our personal credit cards and then at the
end of the month write expense checks to pay ourselves back. We get
all of our bills in pdf which means we can store them in a central
location and we use our own product to import them into QB (08
Premier).

The chart of accounts are setup and we assign the different bills to
accounts as we import them. As i mentioned we pay for most stuff on
our credit cards and pay ourselves at the end of the month. My
question is about the right way show the incoming bills have been paid
but actuall write a check to ourselves for the total payments.

I'm not sure if I'm explaining this well so I'll give an example of a
typical month;
We paid the following on our credit cards and have pdf invoices for
each individual payment:
Advertizing $500
Office Supplies $45
Web Hosting $30
We import each invoice into QB and a bill for each payment is created
and assigned to the right account. If I mark them as paid, our bank
balance is decreased by the value of each invoice. I now want to write
myself a check for the $575 I paid on my CC. If i write this check our
bank balance will decrease again by $575. Obviously this isnt right.

Whats the right way to do this so that we keep the detail of where our
money is spent and we still get paid!?

thanks
Ian

Posted by Laura on October 11, 2008, 2:43 pm

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> We pay most of our bills on our personal credit cards and then at the

> end of the month write expense checks to pay ourselves back. We get

> all of our bills in pdf which means we can store them in a central

> location and we use our own product to import them into QB (08

> Premier).

> The chart of accounts are setup and we assign the different bills to

> accounts as we import them. As i mentioned we pay for most stuff on

> our credit cards and pay ourselves at the end of the month. My

> question is about the right way show the incoming bills have been paid

> but actuall write a check to ourselves for the total payments.

> I'm not sure if I'm explaining this well so I'll give an example of a

> typical month;

> We paid the following on our credit cards and have pdf invoices for

> each individual payment:

> Advertizing $500

> Office Supplies $45

> Web Hosting $30

> We import each invoice into QB and a bill for each payment is created

> and assigned to the right account. If I mark them as paid, our bank

> balance is decreased by the value of each invoice. I now want to write

> myself a check for the $575 I paid on my CC. If i write this check our

> bank balance will decrease again by $575. Obviously this isnt right.

> Whats the right way to do this so that we keep the detail of where our

> money is spent and we still get paid!?

> thanks

> Ian

QB allows you to set up your credit cards as their own account. You enter
each transaction (banking>>enter credit card charges) then when actually pay
the credit card bill you would use the write checks feature to record the
payment. When you do this step, the "expense" account is the credit card
account. This will decrease your checking account as well as your credit
card balance.

Posted by Haskel LaPort on October 11, 2008, 3:39 pm

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> We pay most of our bills on our personal credit cards and then at the

> end of the month write expense checks to pay ourselves back. We get

> all of our bills in pdf which means we can store them in a central

> location and we use our own product to import them into QB (08

> Premier).

> The chart of accounts are setup and we assign the different bills to

> accounts as we import them. As i mentioned we pay for most stuff on

> our credit cards and pay ourselves at the end of the month. My

> question is about the right way show the incoming bills have been paid

> but actuall write a check to ourselves for the total payments.

> I'm not sure if I'm explaining this well so I'll give an example of a

> typical month;

> We paid the following on our credit cards and have pdf invoices for

> each individual payment:

> Advertizing $500

> Office Supplies $45

> Web Hosting $30

> We import each invoice into QB and a bill for each payment is created

> and assigned to the right account. If I mark them as paid, our bank

> balance is decreased by the value of each invoice. I now want to write

> myself a check for the $575 I paid on my CC. If i write this check our

> bank balance will decrease again by $575. Obviously this isnt right.

> Whats the right way to do this so that we keep the detail of where our

> money is spent and we still get paid!?

Set up dummy credit card accounts for each owner/employee in question.
Either import the bills as credit card charges to their respective dummy
account or record the payment of the invoices by the dummy credit cards..

> thanks

> Ian

Posted by EXT on October 12, 2008, 7:59 pm

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Set up your personal Credit Cards as business Credit Cards and pay them
direct out of the company funds. Or if there are only a few small charges,
set up a cash account as a bank account and make the payment for the
expenses out of it to yourself, with the cash account replenished by
transfers/payments from your bank account.

> We pay most of our bills on our personal credit cards and then at the

> end of the month write expense checks to pay ourselves back. We get

> all of our bills in pdf which means we can store them in a central

> location and we use our own product to import them into QB (08

> Premier).

> The chart of accounts are setup and we assign the different bills to

> accounts as we import them. As i mentioned we pay for most stuff on

> our credit cards and pay ourselves at the end of the month. My

> question is about the right way show the incoming bills have been paid

> but actuall write a check to ourselves for the total payments.

> I'm not sure if I'm explaining this well so I'll give an example of a

> typical month;

> We paid the following on our credit cards and have pdf invoices for

> each individual payment:

> Advertizing $500

> Office Supplies $45

> Web Hosting $30

> We import each invoice into QB and a bill for each payment is created

> and assigned to the right account. If I mark them as paid, our bank

> balance is decreased by the value of each invoice. I now want to write

> myself a check for the $575 I paid on my CC. If i write this check our

> bank balance will decrease again by $575. Obviously this isnt right.

> Whats the right way to do this so that we keep the detail of where our

> money is spent and we still get paid!?

> thanks

> Ian

Posted by qbhelper@jenniferthieme.com on October 13, 2008, 11:23 am

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> Whats the right way to do this so that we keep the detail of where our

> money is spent and we still get paid!?

> thanks

> Ian

Hi Ian,

Based on the procedures you are currently following, here's what I
suggest.

Continue to import and assign the vendor bills as you have been doing.

When you go to the "pay bills" screen, instead of choosing your
regular business checking account for the payment account, create a
mock bank account called, "Owner Reimbursements." Use this account at
the payment account in the "pay bills" screen each time you want to
record the bill as paid by your personal credit card.

At the end of the month, examine the balance of this new mock account.
This is the amount you will reimburse yourself. To do so, go to the
Write Checks screen by pressing Control-W. Make sure your regular
business checking account is selected in the top of the screen in the
Account box there. Fill in the top portion of the screen as you
normally would and enter the amount of the reimbursement. In the lower
half of the screen, under the Expenses tab, select the new mock
account and enter the amount of the reimbursement. Save the
transaction. Issue the reimbursement to yourself.

Go back to the Chart of Accounts. If you did the transaction
correctly, the new mock account will have a zero balance, and your
regular checking account will be lower by the amount of the
reimbursement.

Let me know if this makes sense.

Jennifer
Get my free eBook:
"7 Common Mistakes People Make in QuickBooks ...and How to Fix Them!"
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