would you like to be able to record non-business transactions and quickbooks online
well in this episode of quickbooks online crash course
you will learn how to record cash transactions between the company and the owner
if you have any questions about this topic you can leave them in the comments section below and i'll
do my best to help you and of course if you feel the video helped you i hope you will click like
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when cash comes from the company's bank account credit card or cash box into
the owner's non-business funds the correct account to record this in is already in
quickbooks online's chart of accounts it's called owner's pay and personal expenses
owners pay and personal expenses will show the total amount of money taken from the business
cash and given to the owner for non-business reasons for example let's imagine on january 16th
of 2020 wander withdrew 800 from the company bank account for non-business personal use
it's the same expense window we have been using all along and the only difference is
we're going to put on the line where it asks us for an account the account we will now
use owner's pay and personal expenses so what will the result be in the trial balance
after we record this january 16 transaction well we know that the cash and bank will decrease
by eight hundred and become four thousand because that's where the money's coming from
and if the owner took out eight hundred it means for the very first time
owner's pay and personal expenses will show up in the trial balance for eight hundred dollars
click new and go over to expense the date is january 16th of 2022
we can leave the payee blank because it's an owner to business transaction and that's fine
however the payment account the account the money is being paid from in this example is
cash in chase bank and the money is going to the equity account or the account under account type
equity owners pay and personal expenses and the amount is eight hundred dollars it's that simple
if the owner takes business money for non-business use then we click save and close and the results
are exactly as what we expected cash and bank went down to 4 000 and for the very first time
owner's pay and personal expenses showed up in the trial balance for eight hundred dollars
now we can use this same account for non-business services for example let's imagine on january 17
of 2022 wanda paid check number 1002 to ned's taxi for a non-business personal ride fifty dollars
this time we will use the checks window but we will also choose owner's pay and personal
expenses so what will be the result now well if we are in fact uh paying uh from cash and bank
then cash and bank will decrease you see this it will decrease by fifty dollars
and that means we have fifty dollars more that we took out of the company for non-business use
so owners pay and personal expenses increases to 850 dollars and that will be the result or the
correct result anyway after we record the check we click new check we put the date as the 17th
this time we do have a payee because you're paying a third party and remember the money is
coming from chase bank but it is not going towards a business expense it's going towards the owner's
personal pay and personal expenses and it was check number one zero zero two in the amount of
fifty dollars when we click save and close you can see that cash in bank is exactly as what we
expected 3 950 and owners pay and personal went up to 8.50
let's double click that and see that the reason why we know the total money that the owner took
from the company was 8.50 was because first wanda took on january 16 800 cash from the account then
on january 17th she wrote a company check for something that had nothing to do with the company
so this is not transportation expense it's owner's pay and personal
now what about when cash comes from the owner personal non-business money and the owner puts
that money into either the company bank account or the lock box the account that we record those
transactions into is also already in the chart of accounts and it's called owners investment so
example three let's imagine on january 18th of 2022 wanda took 200 of her own personal
non-business cash and put it into the business cash lock box we will use the deposits window
and we will use the owners investment account now if we do this what will the results be well
we know that money is coming into the lock box so the account that says cash on hand
is going to increase by two hundred dollars because that's the amount that vond is putting in
and the cash on hand will become 500 and because that two hundred dollars came from the owner's
personal money that means for the very first time the account called owner's investment will show up
in the amount of two hundred dollars which is the amount that the owner took from their personal
and gave to the business so very simple let's just click reports and trial balance just so
that we can see the results immediately click new go over to bank deposit and on the 18th
the money that was deposited was not deposited in the bank account it was deposited in the cash
lock box and we can leave the name blank because it's between the owner and the company
and the account will be owner's investment and the amount that in this case that was
invested into the company from the non-business owner's personal cash
200. now we click save and close and we can see the results are exactly as what we expected
cash on hand has increased to 500 and for the very first time owner's investment
showed up for 200 that represents the amount of money taken from the owner and given to the
business
you