Categorise money transfers in QuickBooks Self-Employed

Use the owner's deposit category when transfers add personal money to your self-employment finances.

This is different from business income - it's not money paid to you by someone you work for. It's also not personal income. From an accounting perspective, you're investing in your self-employed business.

Use the owner's withdrawal category when transfers take money out of your self-employed finances for personal use.

Basically, this is when you move self-employment income to your personal accounts to pay yourself.

Use this category for credit card payments only. This category is slightly confusing. These transfers aren't business expenses since you're not actually buying anything. Instead, you're categorising the payment you made to your bank or credit card for business purchases you already made.

When individual expenses show up after a purchase, you'll categorise those transactions as expenses.

Transfers from income accounts

Let's say you have both a PayPal and a checking account connected to QuickBooks Self-Employed. If a client pays you £500 through PayPal, you'll see that transaction come in from your PayPall acount. That's income.

Then, you move that £500 to your checking account. You'll see the £500 again. This is a transfer, not income.

Categorise the PayPal transaction as Business and Income. Categorise the transfer to your checking account as a Transfer. That's because you received the income in PayPal and simply moved that same money.

Transfers from Etsy

When you receive income from Etsy, categorise the Etsy transaction as Business and Income.  When you deposit the money into your bank account, categorise it as a Transfer.