How can i reconcile business transactions with a personal account?

aa1745 · ‎December 27, 2018

Hi, I have a very small business with few transactions so I am using only my personal bank account and credit card. I have input my expenses over the last year and would like to reconcile my accounts. I have linked my bank account and downloaded the last 90 days transactions now i am stuck!

1. My bank account opening balance is zero which is incorrect, so this needs changing - am I right in thinking I make a journal entry to opening balance equity?

2. I believe I can exclude personal transactions that have been imported from my bank account from the last 90 days allowing me to reconcile only business transactions - is this correct?

3. How do I reconcile the previous months which cannot be imported from my bank feed and manually exclude personal transactions??

Many thanks in advance!

Rose-A · ‎December 28, 2018

Glad to have you here in the Community, aa1745.

I'd be glad to help you reconcile your business transactions with a personal account.

When setting up a bank account, QuickBooks lets you enter the bank's opening balance. If you already set up your bank without an opening balance, below is an article with detailed steps on how to enter an opening balance.

Enter an opening balance for a bank account.

For your second question, reconciliation would not be going to work on this because you use your personal account in some business expenses. Reconciliation will be based on your bank statement. You will not get the right ending balance if you exclude personal transactions and just reconcile the business transactions. And or the previous months that cannot be imported through bank feed, you can manually bring the transaction into QuickBooks using a WebConnect feature.

Here's an article with detailed steps on how to upload a WebConnect file: https://quickbooks.intuit.com/community/Banking-and-bank-feeds/How-to-upload-more-than-90-days-of-ba....

If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.

The Community is always here to help you out. You can always leave a reply, I'll help you the best I can. Happy Holidays!

View solution in original post

Rose-A · ‎December 28, 2018

Glad to have you here in the Community, aa1745.

I'd be glad to help you reconcile your business transactions with a personal account.

When setting up a bank account, QuickBooks lets you enter the bank's opening balance. If you already set up your bank without an opening balance, below is an article with detailed steps on how to enter an opening balance.

Enter an opening balance for a bank account.

For your second question, reconciliation would not be going to work on this because you use your personal account in some business expenses. Reconciliation will be based on your bank statement. You will not get the right ending balance if you exclude personal transactions and just reconcile the business transactions. And or the previous months that cannot be imported through bank feed, you can manually bring the transaction into QuickBooks using a WebConnect feature.

Here's an article with detailed steps on how to upload a WebConnect file: https://quickbooks.intuit.com/community/Banking-and-bank-feeds/How-to-upload-more-than-90-days-of-ba....

If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.

The Community is always here to help you out. You can always leave a reply, I'll help you the best I can. Happy Holidays!

Taniaw22 · ‎August 03, 2020

I have a client who has an LLC but for the past 2 years have been using their personal bank accounts for the business. I am now working with them to get their books sorted out. The problem is they have imported the bank statements into quickbooks. do i need to reconcile these bank accounts and my second question is do i allocate all personal expenses against equity or do i delete these transactions?

MGDLA · ‎April 13, 2021

Hey there,

Did you ever get an answer on this? I’m in a similar situation.

Ashleigh1 · ‎April 13, 2021

Hello MGDLA,

Thanks for posting on this thread,

So any personal transactions you will need to exclude as not pertaining to the business and then you can reconcile the account but you will have to be aware the amount to the in the bank and quickbooks will not match up.

If you want the personal information in the qbo you need to ensure if you are vat registered to put no vat on or put them all to an account in the chart of account specifically for personal transactions which will then show up on the balance sheet or the p&l because if you put the transactions to specific categories you use for business it will through things out.

You can set up a director's drawing account and put all those personal purchases there.

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How can i reconcile business transactions with a personal account?