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userahmedbuhassan56
January 29, 2021
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Start bank account

  • January 29, 2021
  • 1 reply
  • 0 views

Hi all, 

 

We have started our operations and we are in the process of opening business's bank account. Currently I'm using my personal bank account which has the capital of the business until other is opened.

Is there any special treatment of current situation (using my personal bank account) and how to record moving the funds to the other account?

Best answer by AlexV

Hi userahmedbuhassan56!

 

It's not recommended to mix your personal transactions with your business funds. In regards to tracking the owner's equity, it's best to seek some guidance from your accountant. 

 

Additionally, you can record the business expense using a journal entry if you paid it with personal funds.

  1. From the + New button, select Journal entry.
  2. Select the expense account for the purchase on the first line.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity and enter the same purchase amount in the Credits column.
  5. Tap Save and close.

Once done, you can record a reimbursement using a check or expense. 

 

I've added three different articles on how to manage the business and personal funds.

Leave a message below if you need anything else. We'll respond as soon as we can.

1 reply

AlexV
AlexVAnswer
January 29, 2021

Hi userahmedbuhassan56!

 

It's not recommended to mix your personal transactions with your business funds. In regards to tracking the owner's equity, it's best to seek some guidance from your accountant. 

 

Additionally, you can record the business expense using a journal entry if you paid it with personal funds.

  1. From the + New button, select Journal entry.
  2. Select the expense account for the purchase on the first line.
  3. Enter the purchase amount in the Debits column.
  4. On the second line, select Partner's equity or Owner's equity and enter the same purchase amount in the Credits column.
  5. Tap Save and close.

Once done, you can record a reimbursement using a check or expense. 

 

I've added three different articles on how to manage the business and personal funds.

Leave a message below if you need anything else. We'll respond as soon as we can.

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