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August 8, 2023
Question

Categorize money transfer to my personal bank account? (Sole Prop)

  • August 8, 2023
  • 1 reply
  • 0 views

I am a new sole proprietor. I've been using quickbooks and it is connected to my BUSINESS bank account, so it auto transfers every new transaction.

I do have a separate business and personal bank accounts but it is my understanding that as a sole prop I will just file everything together at the end of the fiscal year.

 

After saving a % of all my business income towards future taxes, I transfer the remaining balance to my personal account so I can use it from there. However... Quickbooks is asking me to categorize that transfer and I can't quite figure out what category would that be? 

 

Also, the % of income that I’m saving towards taxes - I'm also transferring that to a "savings account" inside my business account. I imagine quickbooks will also ask me to categorize that transfer and I'm not quite sure what would it fall under.

 

Thank you!

1 reply

August 9, 2023

Hi soleprop2023,

 

Welcome to Community!  Making sure your transactions are recorded accurately, is a vital part of balancing your books.  QuickBooks Online enables you to categorize your transactions, so you can reconcile your accounts effortlessly.  However, as a sole proprietor, I recommend speaking with an accounting professional for their expertise and best course of action.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area.

 

If you have any other questions, feel free to reach back out.  We'd be happy to help!