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kfalconer
Level 1

How do YOU business owners, track personal tax deductions?

Hi there - 

 

We all know it is best to keep business and personal bank accounts separate - we, as business owners do that.  Quickbooks self-employed is great at tracking the deductible business expenses....BUT how are you all tracking deductible personal expenses?  Charitable contributions, mortgage interest..... I would love one accounting software package that could do both so that at the end of the year I could push a button and poof both business and personal taxes would be categorized and calculated. What software are you using?

5 Comments
qbteachmt
Level 15

How do YOU business owners, track personal tax deductions?

I use Quicken.

IamjuViel
QuickBooks Team

How do YOU business owners, track personal tax deductions?

Hello there, @kfalconer.

 

Allow me to share some information on how QuickBooks Self-Employed handles your personal transactions.

 

When you connect your bank account with QuickBooks, it’ll help you sort through each transaction. You’ll be able to mark each transaction as either personal or business, whichever reflects the transactions’ category accurately. QuickBooks helps you manage your self-employed related business finances in preparation for taxes. This means all of your personal transactions simply get set aside so you can focus solely on your business finances.

 

As you’ve experienced, QuickBooks Self-Employed’s purpose today is to keep track and calculate business income and spending, but we hear you, and recognize that not being able to track all of your finances (business and personal) in the same tool can be annoying.

 

That said, your continued feedback on the issue helps to tip the scales toward creating a solution and accommodating that complexity. We’d love to hear more about how you track your personal finances today, Mint or otherwise, and what tracking your personal finances in QuickBooks Self-Employed would need to do in order to work for you. 

 

For additional insights, you may check out these articles:

For you to be guided properly in categorizing your self-employed business expenses, I’d recommend consulting with your accountant. You can also visit our AnswerXchange Community Team for further assistance on tax-related questions.

 

Keep in touch if you have other questions tracking your transactions in QuickBooks Self-Employed. I’d be glad to answer them for you.

kmclean88
Level 1

How do YOU business owners, track personal tax deductions?

It would be helpful to be able to categorize personal expenses as well as business expenses since we can already classify them as personal. Right now it seems silly to have to get another software to do that. 

kmclean88
Level 1

How do YOU business owners, track personal tax deductions?

Has there been any progress on this? It seems silly to have to get another software to do personal transactions as they are already being set aside by quickbooks. 

john-pero
Community Champion

How do YOU business owners, track personal tax deductions?

Personal expenses in a business setting are most generally all considered to be owner draw of equity.  But there is nothing to stop you, other than maybe tge version of QB you use,  from adding multiple sub accounts of owner draw to categorize your personal health insurance, daycare, school tuition, etc and then produce a report 

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