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Join nowHow do I record a transfer from my personal savings acct to my
business checking acct. ? what do { put in the "Transfer funds from" space
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This is Fine: "When I put owners equity account as the "from account" quickbooks warns me about using retained earnings acct."
Notice it is a Yellow Warning Triangle, not a Red X Error. You are doing it right; this is a confirmation that you need to click, "Yes, I know what I am doing is Right. That's for asking, though."
A Make Deposit as Owner Equity would give the same warning and is the Same function as a transfer, using a different Input screen. Either method is Fine.
If allowed (I have to look in my own program), it would be from Owner Contributions, one of your equity accounts. That is if you can transfer from equity to banking. Otherwise, and it is best so you see a name when you reconcile, is to record it as a Deposit, not a Transfer. Still it comes from Owner Contribution.
You need a minimum of 3 equity accounts and 4 is better. Contribution, Draw and Owner Equity. I get away with making draw and contribution sub accounts of Owner Equity but there is also argument for all 3 being sub accounts of a parent summing Equity account that is never posted to.
there is no transfer from personal to business because the personal accounts should not be in the company business file
you make a deposit and use the equity investment account if you are not taxed as a c- or s-corp, if you are taxed as a corporation then it is a liability account as the source account for the deposit
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
Hello @the_tile_setters:
In order to answer this question, we need to know a little bit more about your business. Are you were sole proprietor? And LLC? Or corporation?
If you were sole proprietor, you would have to code at toward your equity account. In this case I wouldn’t use the bank transfer selection I would just go to make a deposit.
If your corporatation, then you need to put that against your shareholder account. Or are you loaning the money to your Business? You may have a loan to officer account that you can code it to.
I hope that helps. If not ask my questions.
lynda
mine is a sole proprietor. When I put owners equity account as the "from account" quickbooks warns me about using retained earnings acct.
@the_tile_setters wrote:
mine is a sole proprietor. When I put owners equity account as the "from account" quickbooks warns me about using retained earnings acct.
Yea that is the intuit programmers, once again taking dumb short cuts
For sole proprietors only, intuit renamed the retained earnings account as owner equity, that way last years net income would post to it automatically. As a result you get that warning cause they were not smart enough to turn it off in a sole proprietor scenario, and as a result it causes confusion
I always set up the equity accounts from the chart of accounts, then rename the intuit equity account to retained earnings as it should be.
This is Fine: "When I put owners equity account as the "from account" quickbooks warns me about using retained earnings acct."
Notice it is a Yellow Warning Triangle, not a Red X Error. You are doing it right; this is a confirmation that you need to click, "Yes, I know what I am doing is Right. That's for asking, though."
A Make Deposit as Owner Equity would give the same warning and is the Same function as a transfer, using a different Input screen. Either method is Fine.
Thank you so much for saying it how you said it, lol
I just needed to hear it that way, real basic. QuickBooks has a lot of
things going on that, to me, dont make any sense at. But I I love it anyway.
thanks again,
Todd
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