I would like some advise if I pay a person that is personal for example my mortgage do I make the transaction as personal or do I put the transaction to drawings self on the app how will either transaction effect the tax situation?

I’m glad to share some information with you, @Kirbcop.

You can categorise the transaction as personal. Anything that you paid for personally can be tagged as Personal in QuickBooks Self-Employed (QBSE).

Here are the steps to do it:

1. Go to the Transactions menu.
2. Find a transaction on the list.
3. Select Personal.

You can also check this reference to learn more about categories in QuickBooks: Categorise transactions in QBSE.

Please know that personal transactions don’t impact your Tax summary and Profit and Loss statement at all. QuickBooks will automatically determine and separate those entries to keep your tax calculation accurate.

You might want to create and manage category rules in QBSE. This way, you can quickly categorise common expenses and income.

I’ll be here anytime to help if you have more questions or concerns about managing personal transactions. Just drop a comment below. Have a great day!