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Legendaryalex
April 11, 2024
Question

transferring funds from my personal account to the Business Account

  • April 11, 2024
  • 1 reply
  • 0 views

so i have had no sales/income coming in for my business for 2023 but i have been transferring funds from my personal bank account to the business account ( INTERNET TFR FRM CHECKING INTERNET TFR FRMCHECKING) to pay the monthly bills with that said i do not know what to categorize it.

 

I think that i am suppose to put it under the Vender that i paid it too and the category should be the Expense it was for ? 

 

I know when the bills pull out the funds from the business account i put it under the category of which it is from example: software.    

 

I want it to show up in my losses as i am putting money from my personal account.  

thanks in advance 

1 reply

Rainflurry
Rainflurry
April 12, 2024

@Legendaryalex 

 

It depends on if you're a sole proprietorship (or single-member LLC), S-Corp or other.

 

The transfer from your personal account into the business should be recorded as an increase in equity (Owner's Capital if SP or Shareholder Contribution if S-Corp.).  Then, create a bill and pay it from the business bank account.  That accurately records the deposit into the business account as an increase in equity and an increase in cash.  The bill (and subsequent bill payment) records the expense and reduction in cash that was used to pay the bill.   

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