hi, i have a small business (an llc but i am the sole proprietor and i file a 1040 schedule c for the business)…
i’m switching to quickbooks from another program (multiledger) and i used to have and use a separate multiledger “company” set up just for balancing my personal checking account, but i’m wondering if i can and should now meld the personal bookeeping into my qb business ledger?…
i use the personal checking account to:
- pay for personal things, of course
- pay for personal percentages of business expenses since i work from home, so for example: i pay 50% of my utlility bills from my personal checking account (and 50% from my business checking account)
- i sometimes transfer money from my business checking account to my personal checking account for personal expenses reimbursement, and also to pay myself for owner’s draw
so my questions:
- can i set up a chart of account in my business qb ledger and use it for my personal checking account, but somehow have it not affect my business profit and loss statements etc?…
- can i (should i?) then set up chart of accounts for expenses, like “utilites – personal” where my personal checking account assigns payments to those accounts? can i set things up so i can keep those payments separate for my business reports?
- if the above is possible, are there any reasons why i shouldn’t do it? (a reason why i’d like to do it is so that i don’t have to always open up and work in 2 different qb ledger “companies”)
thank you for your help and forgive me for my lack of knowledge when it comes to principles of accounting!
todd
