I am setting up a client with a Quick Books account. I have all his bank statements and credit card statements, which I imputted into QB and all balances correctly.
However, now he is asking that I pull out some expenses because they are personal payments and not business payments. I'm not exactly sure where to put them to reflect that.
In any other business account I have done, it's all been business charges, never mixed. Should I just create a "Personal" category and put all of these charges into it or do it a different way?
Is he a sole proprietor? Then it would be a draw account like Rebecka said. If it is a corporation and he is using the corporations money for personal things then that is actually income to him, and should be recorded with his payroll.
Not necessarily. In a corporation, one can be taking a paycheck with payroll deductions etc and still take an owner's draw or dividends. The tax implications can be dealt with at tax time.
In this case I will default to those with more experience. I believe the gist of what they are saying though is to leave them in, but point the expenses to the correct category. (Whether that's owner's draw, dividends, or payroll)
How to reflect this in a QB file
Linear Mode
