Skip to main content
R
Race-MX
March 14, 2024
Question

How to record personal income in QBO

  • March 14, 2024
  • 1 reply
  • 0 views

I have a personal (non taxable) payment processed through one of my business accounts. How do I categorize this so it is recorded properly and not included in taxable sales? I cannot find any way to create a personal income category. Not surprisingly a "personal expense" category is easy to find, QBO will go as far as automatically categorizing expenses it deems personal in nature but this option does not appear to exist for personal income. The version of QBO I'm using does not have classification of categories. 

1 reply

G
GlinetteC
March 15, 2024

Hello there, Race.

 

Allow me to offer you some insights into how QuickBooks manages the combination of personal and business funds.

 

Maintaining financial clarity and accuracy is usually recommended by avoiding mixing business and personal expenses. However, there may be instances where you are required to combine the two, though it isn't advisable.

 

You don't need to create a separate income account for your personal income. Instead, you can record it as a deposit directly into your Equity account.

 

Here's how:

 

  1. Click +New and select Bank deposit.
  2. Go to the Add funds to this deposit section.
  3. Choose Owner's Equity under the Account column.

 

I would suggest consulting with an accountant. They have specialized knowledge and expertise in financial matters, and provide other options to ensure your books are accurate.

 

I am sharing this article with you to help ensure the accuracy and completeness of your financial records: Reconcile an account.

 

You're always welcome to post again if you have other concerns other than categorizing personal income. The Community is ready to help.

R
Race-MXAuthor
March 15, 2024

I don't need an accountant, all I need is an option to categorize a transaction as personal income. Why is there a category for personal expenses but not for personal income? 

Terms & ConditionsAccessibility statement