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Level 1

Sole Proprietor - Business/Personal Account Transfers

I am a sole proprietor and have a personal and a business account. I typically keep my personal and business expenses separated, however, every once in a while, I am facing one of the following scenarios. I was wondering if someone could explain how to deal with these situations properly. (I use QuickBooks Self-Employed to keep track of income and expenses.)

 

1) I accidentally deposit a check by a client into my personal bank account. 

2) I accidentally pay for a personal expense with business funds.

3) I accidentally pay for a business expense with my personal funds.

 

Do I just transfer the money between the two bank accounts to correct these issues or do I have to write myself an invoice and a check?

 

 

3 Comments
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Level 15

Sole Proprietor - Business/Personal Account Transfers

1)  in real life just transfer the amount to the business checking - the bank feed will pick up the deposit and you match it to the income transaction

 

As far as the second and third, sorry I can not help since you are using QBSE, which does not have equity accounts, or any balance sheet account for that matter.  

 

I am curious, since you use QBSE, how do you track sales tax since QBSE does not do sales tax?

 

 

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Level 1

Sole Proprietor - Business/Personal Account Transfers

I do not have to collect sales tax, but I am curious if I should be using a different version of QB as QBSE seems somewhat restricted?

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Level 1

Sole Proprietor - Business/Personal Account Transfers

Yes, def. upgrade to a better version.  I can't think of any situation when anyone would ever use QBO SE, since there is no balance sheet and no way to complete bank recs.  It only provides half the picture, so to speak. 

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