Some Category Questions
JCat
Member Posts: 1
I really like the accounting transactions layout, but there are a w types of transactions I am not sure how to file:
Say you loan someone $500.00 from your business, and two weeks later, they pay you back. Would that be simply an income and expense that cancel each other out?
What about business taxes that I payout (I'm an S-corp who pays quarterly and end of year). The checks I write out, what are they categorized as? They're not an expense obviously.
Finally, this one's a bit messy: With my business debit card, I may purchase inventory or from time to time, something personal. When paying a monthly fee to the card, how would I work that out - as part of it is an actual business expense. Sorry, this last question may sound like something that should be asked to a professional accountant, but I was wondering if anyone's in a similar situation. Thanks
Comments
Accounting for that loan shouldn't be too hard. I'd make an expense transaction from my bank account to an asset account. I'd call it "Loan to ABC XYZ". That way, your reports will show that your loan is still something you own. Once it's repaid, you'll make an income transaction to the same category, it'll clear out your asset account and put it back in your bank account.
For tax payments, you'll do it through journal entries between your bank account and your tax account.
For the last one, you would just treat that as an expense. Just categorize personal expenses done with your business bank account as Owner's Investments/Drawings, and you're golden.