Skip to main content
M
MariaMatlock
June 16, 2023
Question

Business exclusively using personal checking account for business

  • June 16, 2023
  • 1 reply
  • 0 views

I'm setting up QuickBooks for a company that's been operating since January 2023. They've been using a personal checking account for personal and business income/expenses. 

 

Can I connect the bank account to upload to quickbooks and only select the business income and expenses in the banking section?

 

My concern was that I wouldn't be able to reconcile the account since all of the transactions wouldn't be added to QuickBooks. 

 

-Thanks

Or should I enter all transactions and categorize everything not business related to a particular account?

1 reply

DivinaMercy_N
DivinaMercy_N
June 16, 2023

Hello there. Thanks for choosing QuickBooks Online (QBO) as your partner in managing your books. I'm here to share some information about using a personal checking account for personal and business transactions.

In QBO, it's not recommended to mix your business and personal expenditures. The accounts you connect should be for business-only purposes to avoid confusion when tracking the income and expenses of your business.

 

That said, yes, you can connect your bank account to QBO and choose only the business income and expenses transactions on the Banking page.

 

  1. Connect your bank account to QBO.
  2. Once done, go to the Banking menu and select the Banking tab.
  3. Next, select the bank account you recently connected.
  4. Then, navigate to the For Review tab.
  5. From there, look for the expense and income transaction with the Add option in the Action column.
  6. Click it to expand the view and review the recommended Category. You can change the category, account, vendor, or customer as needed.
  7. Review and add any other information that may be mandatory or missing.
  8. When everything looks good, click Add.

 

Once everything is fine, you can now proceed in reconciling your bank account. 

 

For more information, please read this article: Mixing business and personal funds.

 

In case you want to reimburse the money back to the personal account, you can follow Step 2 of this link: Pay for business expenses with personal funds. 

 

If you have other concerns about managing your transactions, please don't hesitate to leave a reply below. Have a good one and stay safe. 

M
MariaMatlockAuthor
June 16, 2023

Is there a way to manually enter income that was deposited into a personal checking account when that checking account isn't linked to QuickBooks?

 

I know with the expenses portion I can just enter Expenses and zero them out with the Owner's Investment account, but I'm not quite sure how to handle the Income portion.

DHeraV
DHeraV
June 16, 2023

Great to have you back here in the Community forum, Maria. I appreciate you raising your queries here.

 

Yes, there are a few ways of manually entering income transactions in QuickBooks Online (QBO). Before anything else, if you have not created a checking account intended for your income transactions in QBO yet, you have to make one first.

 

Once the account has been created, you can manually record income entries in QBO. You can either choose to record the transactions as Invoices, Sales Receipts, or Journal Entry.

Let me guide you through the steps on how:

To record the income transaction as an Invoice, here's how:
 

  1. In your QBO account, click on +New, then select Invoice.
  2. Enter the necessary information.
  3. Once done, click on Save and Close.


For detailed information, kindly visit: Create invoices in QuickBooks Online.


You can then proceed to receive the invoice payment, here's how:
 

  1. In your QBO account, click on +New, then select Receive payment.
  2. In the Deposit to field, select the checking account you created.


For detailed information, kindly visit: Record invoice payments in QuickBooks Online.

 

Or you can choose to record these transactions as Sales Receipts or a Journal Entry.

 

Moreover, I'll also share this article that can serve as your reference if you want to learn how to get transactions from your bank or credit cards and manually import them into QBO: Manually upload transactions into QuickBooks Online.


Feel free to leave a reply if you have additional QuickBooks-related queries. The Community team always has your back. Have a good one.

Terms & ConditionsAccessibility statement