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jkimmings
January 7, 2020
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Classifying personal VS business expenses

  • January 7, 2020
  • 1 reply
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Hi. I'm currently using separate invoicing and expenses software so at the end of the year I can easily see how much I made and how much I had to pay out. I would like to use QuickBooks to keep in all in one place, but due to being a small company I only have one bank account, so all of my personal payments are mixed up with business payments. I'm happy to go through them all each week/month and sort them out, but how do I classify a personal expense so it doesn't get recorded as an expense at the end of the year, I only want to know about expenses linked to the business?

Best answer by payment after leaving

OK...I don't really mind if the balance is the same or not really, I only need to know my total income from the invoices which is easy, and then the total expenditure. Can I classify personal expenditures in a certain way so that they would be excluded from a report for example?



Hi jasonkimmings

 

Once you exclude the personal transactions from the for review/banking screen they will not appear in any report.

1 reply

P
payment after leaving
January 7, 2020

Hi jkimmings

 

The advice we give would depend on what type of account you subscribe to. Are you self employed and submit a self assessment and are you VAT registered?

J
jasonkimmings
January 7, 2020

Hi. I'm self-employed but using the standard software as the self-employed software didn't have features I need such as chasing invoices. I don't submit a VAT return so all I need is a total income and a total business expenses amount.

P
payment after leaving
January 7, 2020

Hi jasonkimmings

 

With the small business product there is no way to connect your bank account and categorise transactions as personal expenditure. You could exclude the transactions however the balance of the account would include the excluded transactions and therefore the in QuickBooks balance would never be the same as the actual bank account.

 

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