I'm helping a friend with their books, and they've been using their business and personal cards/accounts fairly interchangeably. To complicate matters further, they have a business (run out of a home office), and they're a landlord (so they have deductible expenses for home maintenance), plus they're starting a nonprofit (run on their property). I could use some advice on 1. how many business accounts to create in quickbooks, 2. the best way to disentangle personal from business expenses (from landlord expenses) - do I disconnect all personal cards and then manually add business expenses from those personal cards?
Any guidance is appreciated!
I have another way how you to record personal and business expenses, janetandler.
Generally, we don't recommend mixing business and personal funds. However, we know this happens sometimes. You can record it as cheque or an expense when reimbursing personal expenses. Here's how:
For the reimbursement, you have two options.
Also, if you're referring to how many accounts you can connect with QuickBooks Online (QBO), you can connect as many business and personal accounts as you want. Aside from that, to separate records within QuickBooks, during bookkeeping you need to book them in separate expense accounts. For example, for personal expenses, you may use the other expenses category which moves the expenses to a separate area on the profit and loss reports.
QuickBooks offers a variety of reports that caters to your business need. Learn how to customize them to get the information you need. Customise Reports In QuickBooks Online.
Let me know if you have any questions about personal and business accounts in QuickBooks. I'll be here to help.
If you want to save costs at the risk of messing up your books at any point, you can take advantage of the Locations>Business feature available on QBO Plus. Otherwise, you will have to manage 3 separate QBO accounts.
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