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AREYOUSERIOUS73
October 16, 2023
Question

Organize your expenses

  • October 16, 2023
  • 2 replies
  • 0 views

Hi, I'm just getting started with Quickbooks and it's asking me to categorize my expenses. I know it's not good practice, but I use some accounts and credit cards for both personal and business transactions. How do I categorize personal spending transactions? For example, it's asking me to categorize a purchase at the grocery store. Where would I save this under? It suggested to save it under "Meals", but that falls under a business expense. 

 

Thank you!

2 replies

kamruzzaman
kamruzzaman
October 16, 2023

Hi,

It is very good idea to ask your client for clarifying which one personal and which one business purpose expenses.

Personal expense will go to "meal & substances', "motor running" for personal motor fuel expenses.

I hope you will proceed on step by step. If needed more just contact me.

Thanks

Kamruzzaman

Whatsapp:+[removed]320

J
Jelayca V
October 16, 2023

Hi there, @AREYOUSERIOUS73! 
Welcome to the Community space, and thank you for reaching out to us.
 

As a best practice, it is important to keep your personal and business expenses separate. When starting a new business, opening a business checking account is one of the first steps you should take.
 

Although it is not recommended to mix personal and business funds, some situations may require you to do so. In QuickBooks Online (QBO), it is suggested that you use your check and credit card accounts only for business purposes.
 

However, I recommend that you consult with your accountant to ensure that your specific category is accurate. It's important to properly determine which entries are personal and which are business-related for easier management. A professional can provide valuable guidance in this regard.
 

You may visit these articles for guidance on recording transactions when personal and business finances mix: 
 

Let us know if you have any further questions or concerns in QBO. Community is always available. Take care and have great day!

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