Hi, I have been using capital accounts to manage things like personal expenses paid with business credit card and contributions like paying for business credit card from personal account.
When I have a payment from a credit card that is for personal expenses, I categorize it as 'capital accounts - name - draws. When I have a receipt to the business from my personal account, I categorize it as ‘capital accounts - name - funds contributed’.
the sign is confusing me. When I do a ‘draw’, it enters as a positive number. When I do a ‘funds contributed’, the number is negative.
However, if I have a net positive amount in my capital account, this shows as a negative amount in the balance sheet.
Can someone explain if this is normal or do I have it configured incorrectly?
when I click on ‘capital accounts’ it shows a balance of $1000
when I click on ‘capital accounts’ from the summary page, it shows a balance of $1000 Dr.
One other question - when I do my taxes I have things like mileage charges, and home office use charges. I have been marking these as expense claims - this allows me to categorize the type of expense. I don’t plan to reimburse these expenses however, as it is part of the balance of ebbs and flows of personal money flowing into the business. Is this the right way to model these?
