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Everything you need to know about connecting your bank and credit cards in QuickBooks Online
madhuri.koban
Level 1

After linking a bank account that has both personal and business related transactions so how do I separate these transactions when categorising them on quickbooks?

This is for the purpose of MTD so my personal transactions don't get sent to HMRC every quarter

1 REPLY 1
EmanE17
QuickBooks Team

After linking a bank account that has both personal and business related transactions so how do I separate these transactions when categorising them on quickbooks?

Hello Madhuri, you can categorise personal transactions to an Owner's Equity account rather than business expense categories.

 

If you haven't set up the account yet, simply navigate to the Gear icon> Chart of accounts> New account. In the account name field, enter Personal Transactions. Select Equity for the account type, and choose Owner's Equity for the detail type. Then you can fill out the necessary details. After you've finished, click the Save button.

 

Once done, you can then categorise your personal transactions to that specific account. This keeps them out of your Profit & Loss and ensures they won't affect your MTD submissions to HMRC.

 

Alternatively, you can exclude some personal transactions from the Banking tab if you don't need to categorise them. Just select the specific transaction and click Exclude.

 

If there's anything else you need help with in QuickBooks, please don't hesitate to come back.

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