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Recording transactions without a bank account

Forum|Forum|7 years ago
December 11, 2018
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I am a new business owner. I have 2 months of transactions prior to establishing business banking. I would like to record those transactions in quickbooks for tax purposes but I do not want to link them to any bank account.

For example, while in training, I did not charge customers for nutrition visits but they did pay for their whole food supplements. I deposited income for the purchase in my personal checking. Also, I purchased wholesale supplements using my personal checking. I do not want to add my personal checking account to my quicken business. However, I do need to record the transactions for record keeping purposes.

I need to record income to me and vendor purchases to others...without linking a bank account.

QuickBooks Desktop

Best answer by qbteachmt

"I would like to record those transactions in quickbooks for tax purposes but I do not want to link them to any bank account."

And yet, they obviously are Paid, somehow, using Funds, from somewhere.

"For example, while in training, I did not charge customers for nutrition visits but they did pay for their whole food supplements. I deposited income for the purchase in my personal checking."

Then I recommend setting up one Bank account and name it Owner Funds or Cash On Hand.

"Also, I purchased wholesale supplements using my personal checking."

Checking, credit card, or cash; all you need is one Bank account to represent Owner Paid and Owner Kept revenue from sales.

"I do not want to add my personal checking account to my quicken business."

You never link a personal bank for business purposes, and you don't need to Link an account at all, even if it is a real bank account.

"However, I do need to record the transactions for record keeping purposes."

You did not mention the business Entity Type; if this is a corporation, then instead of Bank Type, use Credit Card Type, as "liability" and name it Owed to Shareholder. Now use the data input tools for "credit card Charges" to show you made these purchases on behalf of the business, and this creates the running balance to repay you.

In either case, you need to process Sales, and then "deposit" either to Owner Bank, or against Credit Card account Balance.

"I need to record income to me and vendor purchases to others...without linking a bank account."

You don't need to link anything, ever. That is Optional.

qbteachmtAnswer

"I would like to record those transactions in quickbooks for tax purposes but I do not want to link them to any bank account."

And yet, they obviously are Paid, somehow, using Funds, from somewhere.

"For example, while in training, I did not charge customers for nutrition visits but they did pay for their whole food supplements. I deposited income for the purchase in my personal checking."

Then I recommend setting up one Bank account and name it Owner Funds or Cash On Hand.

"Also, I purchased wholesale supplements using my personal checking."

Checking, credit card, or cash; all you need is one Bank account to represent Owner Paid and Owner Kept revenue from sales.

"I do not want to add my personal checking account to my quicken business."

You never link a personal bank for business purposes, and you don't need to Link an account at all, even if it is a real bank account.

"However, I do need to record the transactions for record keeping purposes."

You did not mention the business Entity Type; if this is a corporation, then instead of Bank Type, use Credit Card Type, as "liability" and name it Owed to Shareholder. Now use the data input tools for "credit card Charges" to show you made these purchases on behalf of the business, and this creates the running balance to repay you.

In either case, you need to process Sales, and then "deposit" either to Owner Bank, or against Credit Card account Balance.

"I need to record income to me and vendor purchases to others...without linking a bank account."

You don't need to link anything, ever. That is Optional.

What do you choose in payment account drop down menu to record an expense when your bank account is not linked?

Hi there, RN5786.

Thanks for joining the thread. I'm here to provide some insight regarding the payment account.

You'll need to set up one Bank account in QuickBooks so you'll have an option to select when recording expenses. Rest assured, as qbteachmt mentioned, you don't necessarily need to link the Bank Feeds to QuickBooks. The steps below will guide you through the steps on how to set this up:

From the Lists menu, choose Chart of Accounts.
Click the Account drop-down button, then select New.
Choose Bank and click Continue.
Name the account.
Click the Opening Balance button.
Enter the Statement Ending Balance and Statement Ending Date.
Click Save & Close.

That should do it. Once you've created the account, you'll be able to record the expense with the right payment account in no time.

Let me know if there's anything else I can help you with. I've got your back. Thanks again for dropping by, wishing you and your business all the best.

Hello there, @peasinapod.

Yes, Journal entries will be in a Profit and Loss report.

It will directly hit your account. Thus, it will show on the report on either a cash or accrual basis.

I'm adding this article as your preference in viewing the Transaction Journal report. It provides a view of the amount and accounts not visible in the transaction created.

Don't hesitate to let me know if you have questions about Journal Entries. I'm always here to help. Have a great day.