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lutfallah
October 16, 2018
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How do I classify a transfer to my business account from my personal account?

  • October 16, 2018
  • 2 replies
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I sometimes transfer money from my personal account to my business. I just added my personal account to Quickbooks. I "transferred" money from my personal account but I don't see where I classify that as a loan from me to the company. Did I do that right?
    Best answer by Rustler

    if you are taxed as a sole proprietor or a partnership it is equity investment

    I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

    owner/partner equity
    owner/partner equity drawing - you record value you take from the business here
    owner/partner equity investment - record value you put into the business here

    2 replies

    Rustler
    RustlerAnswer
    October 16, 2018

    if you are taxed as a sole proprietor or a partnership it is equity investment

    I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

    owner/partner equity
    owner/partner equity drawing - you record value you take from the business here
    owner/partner equity investment - record value you put into the business here

      rovision
      rovision
      March 6, 2019

      If you draw money from the equity, is this recorded as -amount, or other?

      thanks.

        qbteachmt
        qbteachmt
        October 16, 2018

        I would not add the personal bank to the business data file. You don't need to track that bank account. All you need is to track the reason for the funds (equity or loan), not the Source bank account.

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