Documenting expenses

Forum|Forum|3 years ago
November 16, 2022
2 replies
10 views

I have a S corp that started 7/22. I took out a personal loan, a vehicle loan and used a credit card to start the business. I have paid my mortgage, utility bills, groceries and loan payments out of the business account. How do I set up these expenses in Quickbooks?

OmM1

Level 5

Hello YTLD

Thank you for reaching out with your question.

While it is the best and important to not to mix business and personal expenses on your S Corp business account.

Any unavoidable personal expenses you incur out of your business account should be treated as Owner withdrawal and booked as such. There is no need or reason to set up detailed accounts for owner's personal expenses (like utilities, groceries etc. ) in your business QuickBooks.

Hope this is helpful

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YTLDAuthor

Level 2

Thank you for the reply. I understand now that it’s considered commingling as I had no idea before. With the owner withdrawals would I then issue myself a 1099 since I am not receiving a payroll check ( which will begin next year)?