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boondikaladdoo
June 1, 2022
Question

Income category

  • June 1, 2022
  • 1 reply
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I have a full-time job that pays me a salary every month, and I also freelance as an artist. I'm confused about categorizing my salary income - should it go into personal or business? I'm fairly new to QB so pardon me if I'm asking obvious questions. 

1 reply

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RoseJillB
June 2, 2022

Thank you for choosing QuickBooks as your accounting software partner, @boondikaladdoo. 

 

I’ll share some insights on how you can categorise your income in QuickBooks Self-Employed (QBSE).

 

We can categorise your income in freelancing as Business income. It determines your estimated taxes and also appears on your financial statements. Thus, you should only classify money earned from self-employment as a business.

 

On the other hand, for your full-time job you can categorise that as Personal income. All money that does not come from your self-employed work should be classified as personal. Personal transactions and deposits, such as regular paychecks from an employer (as long as taxes are deducted), should be designated as such.

 

Moreover, I highly recommended reaching out to your accountant to ensure your books are accurate.

 

In addition, I included this article about categorising transactions in QuickBooks Self-Employed, though the article is based in the US the information is still the same: Categorize transactions in QuickBooks Self-Employed

 

Nevertheless, here are some of the articles that provide you with an overview and deduction categories you can claim as allowable expenses for self-employment.

 

 

Feel free to comment below if you have further questions about QuickBooks. I’ll get back to you as soon as I can. Have a great day!

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