How do I exclude Royalties payments that I receive from the business account ?

GGrand · ‎June 03, 2020

Hi there,

I use a Transferwise account to receive money from my clients (related to my business) and from a company which is giving me royalties.

As I just saw that QBO works with Transferwise now, I add my transferwise bank account to QBO.

Even though I am a single LLC member (sole proprietorship) I know the best practice is to separate Business account to Personal account. I do this for all every other bank accounts but for my Transferwise bank account, I didn't.

If I am right, Royalties are passive personal income which are not included in the Business income.

I have every month received some personal royalties payment and I need to know how to be sure that those payment will be exclude from the profit and loss in Quickbooks... (Royalties are an other stream of revenue, separate from my business).

Can I use the Owner's pay and expenses category to put those income in ? Or do I have to do something else ?

Thanks for your time and your help !

Best,

Rustler · ‎June 10, 2020

Assuming you are correct in that the royalties have nothing to do with the business

deposit the funds and use owner equity or better owner equity investment as the source account for the deposit

GGrand · ‎June 14, 2020

Hi Rustler,

Thanks for the tip about the "owner equity investment"!

So it means that I am saying to QB that I kind of lended this money to my business, correct?

1) With this, are we sure that those transactions won't appear in the profit&loss report?

2) So I do get that for the Royalties coming in, I put owner equity investment as the source account. But which qualification do I choose when the money is going out (meaning I wire those royalties from Transferwise to my personal bank account ?

Thanks again for your help!

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How do I exclude Royalties payments that I receive from the business account ?

How do I exclude Royalties payments that I receive from the business account ?

How do I exclude Royalties payments that I receive from the business account ?

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