Personal Funds for Business

KMichele

Ok so this is gonna sound like a nightmare but when i started my business i used my personal cards and account to run everything for almost the first year before I could register my business and get a business checking account. So from Jan to Nov I used my own personal card to pay for all my business expenses. As I am entering transactions and have all my accounts entered in wave I wanna make sure i am doing this correctly to account for all the personal funds used to run my business in the last year as I have made very little income from my business. I understand using the owner investments category but i am confused on how to integrate this into my case. So for instance I pay a phone bill using my personal card, the transaction is entered and its categorized as wireless telephone. It shows in the accounting that it was taken from my personal checking account and listed as personal checking xxx do I still need to do journal ledgers to account for the use of personal funds? Please haaalllppp I already filed for an extension on my taxes because my accounting wasn't finished and would like some insight from some other people farther along than i am. Thank you in advance

Alexia

Hi, @KMichele.

We have an article on the Help Center that might help. It explains how to handle your situation exactly.

For your example, you would have a bill set up on your personal page, which you would categorize as Wireless Telephone. You would record this bill as paid, find the transaction and change the category to Owner's investment/Drawings.

Then you'd go to your business page and create a journal transaction that credits Owner's Investment/Drawings for the amount spent, and credits the amount paid for the phone service to Wireless Telephone, and the taxes to your tax account.