QuickBooks Tip: Categorizing Personal Expenses
If you’re a small business owner, often times accounting or bookkeeping isn’t always your area of expertise. As such, tracking all the money coming in and out of the business can get tricky. One common question is how do you categorize personal expenses in QuickBooks?
Actually, you don’t.
The business doesn’t have ‘personal expenses’. Creating an equity account and categorizing by an ‘owner’s draw’ is the best practice. (Related Article: Create An Owner’s Draw)
For more insight on QuickBooks best practices and/or to get QuickBooks working for you, contact Chris McGee at (360) 303-5978 or email him at Chris@PFICoach.com.
Based in Bellingham, WA, ProFound Impact is a division of Business Support Services Northwest, LLC. Proudly providing bookkeeping, payroll, QuickBooks training and reliable business advice to the North Sound, Whatcom and Skagit Counties for over 30 years.