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January 15, 2022
Question

Do I put my personal expenses in drawings and capital, I’m a sole trader

  • January 15, 2022
  • 1 reply
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1 reply

MaryLandT
January 15, 2022

 Yes, you can record personal expenses in QuickBooks Online, d24-post-com.

 

To do so, you need to create an Owner's equity account to track withdrawals of the company's assets. Then, write a cheque to record those expenses.

 

To create an Equity account:

 

  1. Click the Gear icon at the upper right corner and choose Chart of Accounts.
  2. In the Chart of Accounts window, select New.
  3. From the Account Type drop-down, choose Equity.
  4. From the Detail Type drop-down, choose Owner’s Equity.
  5. Enter an opening balance.
  6. Click Save and Close.

 

To write a cheque from an owner's equity account:

 

  1. Select the + New button.
  2. Select Check.
  3. Choose the bank account where your money will be withdrawn.
  4. Select Print later if you want to print the check.
  5. Fill in the check fields. In the Account field, be sure to select the Owner's equity you created.
  6. The memo field is optional.
  7. Select Save and Close.

 

You might want to check these articles to learn more about personal drawings.

 

 

Stay in touch with me if there's anything else I can help you with recording personal expenses. I'm always right here to help you.