So for the first 5 months of my business I ran everything on the same checkings account. I've grown a lot. Opened a business account last week. So now I'm forced I believe after starting over on QuickBooks online to upload both my personal checkings and my business checkings. I need some solid advice and guidance on how to go about categorizing everything and separating everything. Much appreciated!
Do NOT add your personal checking to a business account.
To account for the personal transactions in NEW file, and assuming you are taxed as a sole proprietor or partnership
Create a cash type bank account called owners investment enter each transaction, use the original date and expense when you are done the owners investment bank account will be negative enter a deposit for the full amount and use owner equity or better owner equity investment as the source account for the deposit. That will zero the owners investment bank acciount, and you can make it inactive, until or if you need it again.
For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account) >> Equity >> Equity Drawing - you record value you take from the business here >> Equity Investment - record value you put into the business here