Welcome to the world of managing a single-member LLC, Heppy.
It appears that you have posted the same concern, and my colleague has already provided a response. If you haven't seen the response yet, visit this link for answers to questions 1 and 2: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-how-to-categorize-gift-c...
Regarding question 3, which pertains to Audit Preparedness:
For legitimate business expenses, it is necessary to maintain thorough documentation. Which includes:
- Proof of Income: Gather W-2 forms, 1099 forms, and other documentation that shows the income received.
- Receipts and Records of Expenses: Keep detailed receipts for business expenses, charitable contributions, medical expenses, and more.
- Bank Statements: These will help verify your deposits and withdrawals.
- Investment Records: Include stock or bond certificates, brokerage statements, and other relevant documents.
- Business Records: Maintain ledgers, invoices, contracts, and similar materials for accurate tracking.
I want to ensure you have all the information you need to manage your QuickBooks company file. If you're unsure which expense categories to use or how to track your expenses, it may be helpful to consult with an accountant or tax professional. They have the expertise to guide you on best practices for recordkeeping and categorization that can save you time and prevent issues with the IRS down the line.
Nevertheless, you can check out this guide to link your bank and credit card accounts to QuickBooks Online: Connect bank and credit card accounts to QuickBooks Online. With QuickBooks Online, you can efficiently track and categorize your transactions as they come in, making your financial management streamlined and effective.
Additionally, you can check this helpful guide to help you organize your charts of accounts accurately: Categorize online bank transactions in QuickBooks Online.
We're here to support you as you elevate your business management. Feel free to reach out anytime for additional questions.
