How do I classify a transfer to my business account from my personal account?

Forum|Forum|7 years ago
October 16, 2018
3 replies
133 views

I sometimes transfer money from my personal account to my business. I just added my personal account to Quickbooks. I "transferred" money from my personal account but I don't see where I classify that as a loan from me to the company. Did I do that right?

QuickBooks Online

Best answer by Rustler

if you are taxed as a sole proprietor or a partnership it is equity investment

I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

RustlerAnswer

Level 15

if you are taxed as a sole proprietor or a partnership it is equity investment

I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

rovision

If you draw money from the equity, is this recorded as -amount, or other?

thanks.

qbteachmt

Level 11

I would not add the personal bank to the business data file. You don't need to track that bank account. All you need is to track the reason for the funds (equity or loan), not the Source bank account.

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