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Nick_Mills
May 14, 2021
Question

Linking multiple bank accounts

  • May 14, 2021
  • 1 reply
  • 0 views

Hi there.

 

I am new to this, so sorry if this question has already been asked. I have a business bank account which I used for the business's main transactions like dividends and salary and to receive payments (I am the director of a limited company), which is currently linked to QB and is working well.

 

For cash expenses, I pay them out of my personal bank account, record the details and at the end of the month, add everything up and make a monthly cash expenses payment from my business account to my personal account. 

 

My question is, can I link my personal bank account to QB and select expenses from there? Does that add an extra layer of complication? Or should I use my business account for cash expenses?  

 

Thanks

1 reply

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EmmaM
May 14, 2021

Hello Nick, In an ideal would you would use the business account for those expenses but things can sometimes happen where you end up using a personal account. To be honest there is more than one way you can show this. You can set up a chart of account business account for the personal expenses and when you use your personal account and create an expense use that account and then you can also record the transfer between accounts when paying yourself back and view in QuickBooks what you are spending. This would show correctly on the p and l for your expenses, It would mean both accounts shown on the balance sheet for the banking. The other way would be to treat it as a loan to the business and set up a directors loan liability for the amount used and then you can record a payment to the liability when you pay it back. You may want to confirm with an accountant which they would prefer you to do. If you need further detail on how to set up the director's loan if you go for that option let us know by replying to this thread.

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