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May 22, 2020
Question

Personal Bank account listed in QB

  • May 22, 2020
  • 1 reply
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I have recently taken over the bookkeeping for a small business and the QB account has both the business checking, credit cards and the personal account in the banking screen. This causes the personal account to show up in the reporting. Should this personal checking account be removed from QB?

1 reply

KathyS296
May 22, 2020

This is a situation that needs to be discussed with owner/management. Why was the personal account added? Are all the entries from the personal account being put in QB? Are you reconciling the personal account? Is this simply a situation of the owner spending personal monies on the business and not knowing how to enter them without adding the bank account?

 

BTW - if the issue is simply how to enter expenses paid personally on the books the common solution is to make the entry as usual in QB then add a line indicating owner draw (or other appropriate equity or balance sheet account) as a negative amount to zero out QB transaction. That will enter the expense and give credit to the person who paid the expense outside of the company.