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woolies
July 1, 2019
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personal spending as income?

  • July 1, 2019
  • 1 reply
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Hello, I just want to be sure I am doing the right thing, I use 1 bank account for business and personal. So it has all my business income showing. at the top of the screen it shows my business profit, from which. the tax is calculated, should I mark the payments made from that account for me personally as "personal spending?" because that should still show in the as money i've spent from the profit personally? thanks Woolie
Best answer by

It's great to have you here, @woolies,

 

I can share some insights about setting up an account for both business and personal funds.

 

Generally, QuickBooks is designed for tracking business and not for personal finances. During tax time, you have to declare income and expenses related to your business separately from your personal transactions.

 

While it is not advisable to mix personal and business funds, there are special situations that will require you to do so. If you're operating as a corporation, you should not use a single book for both funds.

 

However, for Sole Proprietors you can categorize personal expenditures as Other Expense and post business as regular Expense type accounts. From a legal point of view, you can use one bank since the legal ownership is the same and there is no reporting of assets.

 

Here are great references to help you account your finances:

 

How to pay for personal expenses from a business card or bank account

How to pay for business expenses with personal funds

 

Please update me if you have more questions about QuickBooks. I'll be more than happy to help whenever you need me. Have a nice day!

1 reply

A
Anonymous
Answer
July 1, 2019

It's great to have you here, @woolies,

 

I can share some insights about setting up an account for both business and personal funds.

 

Generally, QuickBooks is designed for tracking business and not for personal finances. During tax time, you have to declare income and expenses related to your business separately from your personal transactions.

 

While it is not advisable to mix personal and business funds, there are special situations that will require you to do so. If you're operating as a corporation, you should not use a single book for both funds.

 

However, for Sole Proprietors you can categorize personal expenditures as Other Expense and post business as regular Expense type accounts. From a legal point of view, you can use one bank since the legal ownership is the same and there is no reporting of assets.

 

Here are great references to help you account your finances:

 

How to pay for personal expenses from a business card or bank account

How to pay for business expenses with personal funds

 

Please update me if you have more questions about QuickBooks. I'll be more than happy to help whenever you need me. Have a nice day!

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