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