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Devin Ducharme
Level 1

Business Expenses using Personal Bank

Hi!

 

We had a few business expenses get processed using the owner's personal account. I added the owner's personal bank account to quickbooks to review which transactions were business expenses. Since the owner used his card, how should I deal with the transactions? I added some of the expenses already. What should I do with the other transactions that show up from the personal account which are personal transactions? Should I exclude these and ignore them?

 

Does it matter if the quickbooks balance for the owner's personal account doesn't match the bank balance?

 

Thanks!!!

4 Comments
JasroV
QuickBooks Team

Business Expenses using Personal Bank

Hi there, @Devin Ducharme.

 

You can ignore those personal expenses from the owner's account since the purpose of adding it is to track business expenses. 

 

Nonetheless, I'd recommend getting in touch with your accountant for further guidance. This way, we'll ensure the accuracy of your books after recording this.

 

Additionally, here's an article you can read for future reference: Reconcile an account in QuickBooks Online. This link provides detailed information in reconciling your account accurately.

 

Please let me know if there's anything else you need help with. I'm only a post away. Have a wonderful day and take care always!

john-pero
Community Champion

Business Expenses using Personal Bank

You only want to import actual business expenses and ignore all personal. It would be a better solution to not connect the personal account at all but to enter the actual business expenses as coming from a dummy bank account and then balance it to zero by a false deposit from owner equity.  You should do the same thing with the connected account transactions

Devin Ducharme
Level 1

Business Expenses using Personal Bank

Thank you! I'll undo those transactions and disconnect the personal account

Teri
Level 9

Business Expenses using Personal Bank

First rule of accounting:  Keep business and personal separate.  I suggest do not add owner's personal bank account to his QB business accounting system. Assume you have a much bigger mess to sort out if you did.

 

Should account balance match bank?  No, it should not even be in there.

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