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Level 1

How do I classify a transfer to my business account from my personal account?

I sometimes transfer money from my personal account to my business. I just added my personal account to Quickbooks. I "transferred" money from my personal account but I don't see where I classify that as a loan from me to the company. Did I do that right?
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Best answer 10-15-2018

Accepted Solutions
Level 15

if you are taxed as a sole proprietor or a partnership it...

if you are taxed as a sole proprietor or a partnership it is equity investment

I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

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3 Comments
Level 15

if you are taxed as a sole proprietor or a partnership it...

if you are taxed as a sole proprietor or a partnership it is equity investment

I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

owner/partner equity
owner/partner equity drawing - you record value you take from the business here
owner/partner equity investment - record value you put into the business here

View solution in original post

Level 15

I would not add the personal bank to the business data fi...

I would not add the personal bank to the business data file. You don't need to track that bank account. All you need is to track the reason for the funds (equity or loan), not the Source bank account.

Level 2

Re: if you are taxed as a sole proprietor or a partnership it...

If you draw money from the equity, is this recorded as -amount, or other?

thanks.

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