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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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| Posted: Fri May 14, 2004 2:11 pm Post subject: Business expenses paid thru personal checking account |
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I have a client who is just starting a business. He is also working full time at another business while starting a tractor repair service. Most of his expense incurred during the first two months of business were paid by check from his personal account or by using his personal credit cards. I'm now starting to enter his first two months of both receipt and expenses, are all those expenses going to debited to expense and credited to owners investment?
Second question, he has a work truck that he has bought and is also paying for it from his personal account. As business picks up would it be best for him to start paying this expense out of his business account.
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Guest
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| Posted: Sat May 15, 2004 6:41 pm Post subject: RE: Business expenses paid thru personal checking account |
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| Marci inter all personal checks to owners draw not the investment account. For the truck transaction enter to owners equity and then turn around and bring it into the business. Rule number one in any business is get a business checking account. He should also have a credit card just for business. CHARGE HIM FOR THE PERSONAL TRANSACTIONS JUST THE SAME AS THE BUSINESS ONES. THIS WILL USUALLY BRING THEM INTO LINE. |
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