Private bank account shared with business

1

This may sound like an odd question but my husband runs a small manufacturing business and uses his personal banking account for this business also. As he is a new small business owner he is not accountable as a separate entity (ie we do not account for GST as the income is quite small still) but at the end of the financial year, his taxes and the business income and expenses is all lumped together as his own. I understand about using the Disbursement tab for his business expenses that I personally pay for, (or he uses his personal credit card for), but if he pays for a personal expense from his bank account what do I list this under (what is the opposite to the disbursement tab)?

2

First, you should create your husband under Capital Accounts tab.

  • For business expenses paid out of personal funds, you need to use Expense claims tab to record them. (not Disbursements tab)
  • For personal expenses paid out of business bank account, categorize these expenses as Capital accounts : Husband name : Drawings
3

Yes, sorry about that - I was thinking about the disbursements, which we do not have very often, but I meant Expense claims - just as well you pointed that out to me.

i have now set up the Capital accounts : Husband name : Drawings and will see how or if it effects any reports I may run.

Thanking you for your help.