How to categorize Initial Bank balance
zkaufman
Member Posts: 6
Hello
Starting new business and new account. When I connected my bank account, a balance shows up of cash. How to I categorize that? I don't want it to appear to be income
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zkaufman
Member Posts: 6
Hello
Starting new business and new account. When I connected my bank account, a balance shows up of cash. How to I categorize that? I don't want it to appear to be income
Comments
Hi, @zkaufman.
Is this an initial investment you're putting out of pocket? If so, you can just categorize it as "Owner's Investment/Drawings". Since this isn't an income account, it won't be marked as income on your reports.
Yes. Then how do I log some expenses that came out of a personal account? Do I just categorize those as coming from the “owners investment/drawings” as well?
Hi, @zkaufman.
Yes, essentially. We get into a bit more details about this in our Help Centre article about handling business payments with a personal account, but yes, that's how it's handled.