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kbhumber
Level 1

How should I split personal and business expenses that are paid with one bank transaction?

My client is a sole proprietor in the arts and has project-specific expenses that could double as personal expenses. Examples: A haircut and styling for $42 plus a $10.50 tip. $115 for costumes. The transactions have been directly imported from their bank account which is mixed-use. How would you recommend splitting these expenses in QB for reporting while matching bank transactions? Or should I approach it differently?
1 Comment 1
AddieC
QuickBooks Team

How should I split personal and business expenses that are paid with one bank transaction?

Hi there, 

 

When running a small business, sometimes personal and business expenses can get slightly intertwined. I know how important it is to be able to account for both business and personal expenses in QuickBooks Online, and I'd be happy to explain how you can account for that in the bank feed. 

 

Although we recommend not to mix business and personal funds, we know it happens sometimes. See the following articles for information about owners or partners mixing business and personal funds:

During the matching process in the bank feed, you're able to split your transaction between two accounts. While you can select two separate accounts to accommodate a portion of a single transaction, you aren't able to allocate the full amount to two separate places in your books. This is something I'd recommend reviewing with your accountant to ensure you're recording the proper amount to the correct account. If you're not yet connected to an accountant in QBO, you can find one in your area here: Find an Accountant.

 

If your accountant recommends using the "Split" option for your transaction, you can do so by clicking on your transaction, then select Split at the bottom right-hand side of the transaction. The next step is to select the accounts you're trying to split the transaction between, and designating an amount to report to each account. 

 

I hope this helps. If you have any other questions about this, please don't hesitate to reach out to our tech support team


Cheers. 

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