Recording to the loans payable account
I have been using a personal credit card for purchases for my business. When I pay the bill, I record the payment in my check register and use the long term liability account "Loans payable" to record the transaction in Quickbooks. I then make journal entries where I debit the specific expense accounts and credit the Loan Payable account. At this time I am still having to make loans to the business from my personal account to cover my expenses, including the credit card bill. When I make the loan, I record it in my check register as a deposit against "loan payable". Somehow this seems like I am double entering. Recording the payment of the credit card against loan payable and also recording the money I deposit from my personal account to pay the bill against loans payable. Am I doing something wrong? I just can't seem to wrap my head around this. Thanks for your help!!
Hi and welcome to my website!
I have a simpler suggestion.
Forget about posting loans.
Write a company check to yourself to pay your personal credit card statement, but write it for ONLY those purchases that were for the company.
Then post that check to the proper accounts - like Supplies Expense or Office Expense, etc.
That way you don't muddy the waters with personal loans to the company. That's not what you're doing. You're paying for business purchases, you're just paying yourself. Or, if you only use the card for business purchases, you can write the check out to the credit card company itself.
But that's how I'd handle it.
Hope that helps!