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S
SGPT
March 1, 2021
Question

Sole Proprietorship - How to record sales made to my Personal bank account prior to setting up a Business account & QB

  • March 1, 2021
  • 1 reply
  • 0 views

Hello, I recently started my own business (I am a sole proprietor).  I have about 3 months of sales that were e-transferred directly to my personal bank account, this was before I had set up a separate business account and Quickbooks. Is there a way to retroactively record those 3 months of income in QB in order to prepare for tax season? 

1 reply

LeithG
LeithG
March 1, 2021

Hi SGPT

 

After creating the business account, were the sales made prior transferred to that account, or did they remain resident in the personal account?

 

If they were transferred to the business account you'd simply want to record the sales and the deposits to the business account.

 

If there were not transferred to the business account, you'd want to record the sales, and the deposits to the business account; then subsequently, reduce the amount in the business account, balancing against 'owner's draws'.

S
SGPTAuthor
March 1, 2021

The funds are still in my personal account, I didn't transfer anything yet.  

 

Looks like option #2 should work. Thank you!  Much appreciated :) 

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