Skip to main content
M
Mauidan
January 4, 2024
Solved

Categorizing Bank deposits to cover expenses?

  • January 4, 2024
  • 1 reply
  • 0 views

I use QuickBooks 2003, not an online version. Here is a 2 part question:
I live on Maui and have an incorporated business in the tourist industry.
The direct result of the wildfires has been a loss of income. Starting in 2024, for at least a couple

months, I'll need to withdraw money from a personal or retirement account to cover payroll/expenses.

 

This is a question for a tax professional, (working on that) but someone here may have some insight…
Since the reason for this deposit is caused by a hardship, perhaps an "act of god" (not sure about that classification), is there any way to soften the blow, is it a charitable contribution, other thoughts?

 

Then, how do I record these transactions in QuickBooks?

Looking for input on either question... Thanks

Best answer by MadelynC

Thank you very much for such a detailed answer. It was very helpful.


I'm a little slow with this info. Knowing my situation, that I had to cover expenses from

my bank account. Are you suggesting I update my entry in the "from account" field?

If so, can you show me what that would look like? 

 

"I'd recommend opening the transaction and making the necessary updates."


I’m here to help clarify things out so you can cover your expenses successfully, @Mauidan.


What my peer meant in her recommendation is to ensure the account selected in the From Account field is correct. You can open your deposit to double-check the details. If you realize the affected account is incorrect, you can make a correction immediately. No worries, I’m glad to guide you through the process.


Here’s how:

 

  1. In your QuickBooks Desktop account, go to the Accountant menu.
  2. Click Chart of Accounts.
  3. Locate and select the account to open.
  4. Find the deposit and select it to view the information.
  5. Update the account in the From Account field if needed.


I’m adding this reference to ensure everything is accurate and balanced: Learn the reconcile workflow in QuickBooks.


If you require further assistance managing your deposits or completing any specific task in the program, click the Reply button and leave your comments. I'll get back to you as soon as possible, @Mauidan.

1 reply

C
ChristieAnn 11
January 4, 2024

Thank you for visiting the QuickBooks Community, Mauidan. Please know that we are no longer supported QuickBooks 2003. However, I can still provide details to ensure you can manage your transactions in the program.

 

To start with, when you categorize a deposit in QuickBooks, you can still consider this as  Personal. 

 

On the other hand, I recommend creating a journal entry within your program and you can use Partner's equity or Owner's equity as the category. This is done to record the business expenses you paid for with personal funds. 

 

However, I still recommend consulting a Tax professional. They will be able to advise you on how to correctly handle the transactions, particularly the account to be used for your deposit that came by a hardship. This is done to ensure your records are in shipshape when organizing tax data.

 

Moreover, you can subscribe to a QuickBooks Self-Employed account if you wish to manage your transactions within this program. Then, in case you need details on how QBSE helps you record your self-employed income and expenses, track mileage, and prepare your Schedule C tax form, you can read this article: Overview of QuickBooks Self-Employed. 

 

Don't hesitate to click the Reply button below if you have any other questions related to QuickBooks. I'll be right here to help you out, Mauidan. Keep Safe and have a great day!

    M
    MauidanAuthor
    January 5, 2024

    Thank you very much for that information. I've consulted a tax professional, that part is handled.

    Regarding setting up accounts I made some headway.

     

    I was wondering if you would take a look to check what I did so far? 

    If not, no worries..

     

    I created a few (equity) accounts: one is "Bank" and "Shareholder Capital"
    and then a sub account "Shareholder Contributions".

     

    When recording the deposit, in the "Received From" field……
    Does my name go there since it coming out of my personal bank account or
    should that be the bank name (American Savings)?

    J
    jeanbiverly_
    January 5, 2024

    I'd be glad to review your progress, @Mauidan.

     

    When you record the deposit, ensure you enter the bank's name in the "Received From" field instead of your name. This is because the deposit is made from your bank account rather than directly from you.

     

    Just in case you want to review and delete your bank deposits, you can refer to the "Next steps: Manage your bank deposits" section of this article for guidance: Record and make bank deposits in QuickBooks Desktop.

     

    Please hit us up if you need further assistance with recording your deposit. We've got your back.

      Terms & ConditionsAccessibility statement