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April 12, 2024
Question

Can I exclude all my personal transactions, I connected a personal checking account along with my business checking because I used my personal account for some expenses?

  • April 12, 2024
  • 1 reply
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Connecting my personal account and just categorizing just my expenses out of that account skews my numbers on profit and loss or balance sheet

1 reply

DivinaMercy_N
April 12, 2024

Yes, you can. I'd be glad to assist you in excluding your personal expenses in QuickBooks Online (QBO), @robynsnestfarm.

 

Please know that it's not recommended to connect both your personal and business accounts in QBO. This situation is prone to confusion and your books can be messed up due to mixed-up transactions. For additional guidance, you can reach out to your accountant.

 

Since you've already connected your personal account, below are the steps to exclude those personal transactions:

 

  1. Open the Bank transaction page by clicking the Transactions menu.
  2. Next, in the For review tab locate all the personal transactions.
  3. Check the box beside them, and select Exclude.
  4. Then, to remove them permanently, click the Excluded tab.
  5. From there, check the box for each transaction, and click Delete.

 

If the transactions are already categorized, you have to undo them first and follow the steps above to remove them. I'll guide you on how:

 

  1. Select the Categorized tab and locate those categorized personal transactions.
  2. Under the Action column, click Undo.
  3. When done, navigate to the For review tab and follow the previous steps above.

 

I know there are times we're unable to avoid using our own funds to pay business expenses, no worries, the program has a set of steps you can use to properly record it in the system. Read this reference for instructions: Pay for business expenses with personal funds.

 

Once everything is set, you're next step is to reconcile your account to ensure your QBO balance and real-life bank statement are matched. 

 

Making sure you're able to achieve your goal is my priority. If there are any other concerns you may have about managing your bank account, please don't hesitate to leave a reply below. Have a good one.