Why do all transactions automatically get added to business?

sunnyt7

Why do all transactions automatically get added to your business? Most other accounting software doesn't add them until you review/verify.

This is pretty unfortunate when your bank accounts aren't 100% dedicated to the business, or when you need a bit of time to run a transaction by your accountant. It's hard to get a snapshot of your business if you're not 100% up to date and accurate on reviewing your transactions.

Mikeg

As a CPA I try to counsel my clients to always keep business and personal separate. It makes bookkeeping more difficult and can distort business profits. In addition, if a taxpayer happens to be flagged for an audit it makes the process that much more difficult. Most auditors use a sampling method to test business expenses. When personal expenses are mixed in the same account as the business they tend to be suspicious that personal expenses are being deducted even if they are not. Failing in the sample can lead to an auditor asking for documentation for the whole account in question. Better to keep them separate.

You can handle the personal expenses by just classifying them as owners draw on the transactions page.
Mike G, CPA
www.mgfinancial.net
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