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JLIHaulingLLC
Level 1

Transferring Funds

Hello everyone. I had a question. So I have my own business and I am the sole owner, so its considered a sole proprietor. Anyways, so I noticed you can transfer funds in the quickbooks app/browser, and was wondering if its a good idea to transfer funds to my personal account from there? Usually I just go to the ATM and withdraw from the business account and just deposit into my own personal. Just wondering if that's okay, or if that will really screw me up when it comes to taxes or anything really. I'm new to running a business. Any help would be super helpful and appreciated. Thanks!

2 Comments
RCV
QuickBooks Team
QuickBooks Team

Transferring Funds

Thanks for choosing QuickBooks Online (QBO) in managing your business, JLIHaulingLLC.

 

Yes, we have the Transfer feature which makes the transfer funds easy on your account and posted to your bank register. This helps you track the transaction accurately in QBO.

 

You can use the Transfer option or use the Write Check option to record the transfer of funds and the check number. Just check out this article for the steps and details: Transfer funds between accounts

 

On the other hand, it's a good business practice to avoid mixing your business and personal funds. When starting a new business, opening a business checking account is one of the first things to do. Just in case your business and personal finances mix, refer to this article to troubleshoot the issue: Mixing business and personal funds

 

I've articles here about transferring your funds:

 

We recommend reconciling your checking, savings, and credit card accounts every month. Just compare the list of transactions with what you entered in QBO once you get your bank statements. This is to make sure they match your real-life bank and credit card statements.

 

To learn more about reconciling your accounts, refer to this link: Reconcile your bank account with QuickBooks.

 

I'm just one click away if you need anything else in running your business in QBO. I'm always here to ensure your success. Have a great day ahead. 

Rustler
Level 15

Transferring Funds

@JLIHaulingLLC 

 

It makes no difference how you transfer the funds, as long as the outbound transfer is booked to owner equity drawing.

 

I suggest for sole proprietors and partnerships the owner/partner equity accounts look like this:

 

[name] Equity (do not post to this account it is a summing account)

>> Equity ( first of the year roll up drawing and investment into this account as well as retained earnings)

>> Equity Drawing (record the value you take from the business here)

>> Equity Investment (record the value you put into the business here)

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