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Level 2

Paying yourself?

Hi,

 

I'm a sole trader and have a business bank card (Australian accounts) and sometimes I transfer money out of this business bank account into my personal savings account to buy groceries etc (non-business related expenses/personal spending).

 

So far I've just been recording these transfers from business account to private savings account as "owner's draw/owners draw" in the banking section in QB. 

 

However all my personal spending is logged on my balance sheet and in quickbooks also because my savings card need to be linked in quickbooks in order to "match" the transfers.

 

So I'm wondering how do I keep my personal banking completely separate from my business spending and not even have my personal savings bank card linked into quickbooks - but how then do I record this as a transfer or expense? As it's not a business expense but sometimes I need money for basic living expenses etc. and sometimes these can be small amounts ~$20 to larger amounts $300 etc.

 

Occasionally too I also transfer money from my savings back into the business and do the same thing but record it as "owner's contribution." How would I record these also?

 

I've seen some people say you write it as a cheque when you take money out of the business.. but what if it's a transfer or what if you pay for something using your business card? I'm just a bit confused about how to fill it out in the cheque section then or how do I actually record these amounts I take out without having my personal savings account card linked to quickbooks.

 

Thanks!

 

Solved
Best answer November 19, 2020

Best Answers
Moderator

Paying yourself?

Hi snowleopard25,

 

You don't have to have your savings account linked to QuickBooks if it's purely a personal bank account. When categorising your bank transactions, you can add it as a transfer to your owner's drawings account - no matching required. You can alternatively create an expense as well, but that works in the event that you're going to reimburse yourself the same amount from your savings account into your business account. This article provides more detail on recording it as an expense.

 

For owner's contribution transactions, you just need to categorise the 'money in' transaction in your business account as owner's contributions, and select Add to bring it into QuickBooks. Like before, no matching is required.

 

Hope this helps!

 

Bonny

View solution in original post

2 Comments
Moderator

Paying yourself?

Hi snowleopard25,

 

You don't have to have your savings account linked to QuickBooks if it's purely a personal bank account. When categorising your bank transactions, you can add it as a transfer to your owner's drawings account - no matching required. You can alternatively create an expense as well, but that works in the event that you're going to reimburse yourself the same amount from your savings account into your business account. This article provides more detail on recording it as an expense.

 

For owner's contribution transactions, you just need to categorise the 'money in' transaction in your business account as owner's contributions, and select Add to bring it into QuickBooks. Like before, no matching is required.

 

Hope this helps!

 

Bonny

View solution in original post

Level 2

Paying yourself?

Thanks so much for explaining! appreciate it cheers :)