Categorizing personal charges

You would Unlink that account. Never try to track a Personal Account in the business.

Make a Bank type of account and name it Owner Funds. Use it to make your own entries, and only the Business entries. This is "owner paid" by personal check or debit card or personal cash or personal credit card.

When you get paid from clients, that is deposited here as usual, because you Kept the money, either in personal checking or as cash on hand.

And this bank account runs negative from spending, so you bring it to 0 by making a deposit entry as your Equity.

Never link Personal in the business.

I have had my personal & business banking, expenses, etc combined ever since the start of my LLC business. My accountant hasn’t had a problem with it. Any personal expenses are categorized as ”owners draw”, then further categorized by medical, groceries, entertainment etc in owners draw & Fuel, licenses, taxes, maintenance, etc in business. Why would this be a problem?

Hi there, haulinharley. I'd be happy to answer your post.

In general, it is not advisable to mix personal and business funds since in QuickBooks Online (QBO), your check and credit card accounts should be business-only accounts, but if you run into a situation where business and personal finances mix, I've got some articles that will guide you on how to record such transactions.

For information about owners or partners mixing business and personal funds, check below articles:

• How to pay for business expenses with personal funds
• How to pay for personal expenses from a business credit card or bank account

To know on how to reimburse employees who use their personal funds for business expenses, you can read this article: Reimburse an employee.

Moreover, I'd recommend checking with your accountant for information on how your business should classify these transactions. This is to ensure an accurate record of your accounts.

If there's anything else I can help you with in managing your QuickBooks Online account, please let me know by commenting below. I'm more than happy to further assist you.

Is this still working for you? Do you have some time to chat?

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@haulinharley wrote:

I have had my personal & business banking, expenses, etc combined ever since the start of my LLC business. My accountant hasn’t had a problem with it. Any personal expenses are categorized as ”owners draw”, then further categorized by medical, groceries, entertainment etc in owners draw & Fuel, licenses, taxes, maintenance, etc in business. Why would this be a problem?

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@haulinharley wrote:

I have had my personal & business banking, expenses, etc combined ever since the start of my LLC business. My accountant hasn’t had a problem with it. Any personal expenses are categorized as ”owners draw”, then further categorized by medical, groceries, entertainment etc in owners draw & Fuel, licenses, taxes, maintenance, etc in business. Why would this be a problem?

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Do you still do this? Have time to chat? I want to make sure I am doing this right. QBSE was complete crap so I switched and want to make this as simple as possible so I'm not pulling my hair out at tax time.