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Hi All
Can someone please advise the best way in which I should deal with owner transferring monies from his personal account into business account?
Thanks in advance
assuming the business is taxed as a sole proprietor or partnership, deposit the funds and use owner equity investment as the source account for the deposit
For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here
How would this work for a sole proprietorship in QuickBooks Self-Employed? There aren't Owner's Deposit or Equity Investment categories, on Transfer or Personal Deposit. I don't want to categorize it as income since it's already taxed money.
Thank you for joining this thread, @IlluminatedLivingLLC.
Allow me to share details on how to categorize your transactions. Let's get started.
When you deposit money to your business account as capital or investment, this type of transactions is considered as a Transfer. You can put categorize this type of transactions as Transfers: Owner's Deposit or Personal Deposit.
Stay in touch with us here in the Community if you have other questions about categorizing your transactions. I'm always here to help.
Thank you so much!
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