How to enter money I loan to my business?
I am using Quicken HBR 2020. I loaned money to my small business. Currently, I have it entered as an account transfer from my personal checking account to my business checking account. I don't think that is the correct way to document and track the loan for my balance sheet. How should I set this up? Thank you.
In Quicken, there is no such thing as the bookkeeping functions of "Owner Contribution", "Owner Draw" because you and your small business are the same tax entity, reporting your taxes under your personal Form 1040 and Schedule C.
Your transfer between accounts is just that ... moving money from one pocket of your pants to another. It stays within the same tax payer.Also, a transfer transaction from [Personal Checking] to [Business Checking] cannot be categorized to anything other than a transfer.If you're running your business under any other corporate tax structure, you should not have your personal accounts in the same Quicken data file as your business accounts. Ask your tax advisor!1
Thanks for the response. I should have provided more clarity. My small business entity is structured as an LLC with S Corporation designation. I am working with an accountant who is probably pulling his hair out that I am not using Quickbooks. He is asking for a balance sheet report and a profit and loss report for my business. I guess what I am asking for is help with the mechanics in setting up a loan that I made to the business on my “personal accounts” side and setting up the loan on my “business accounts” side.
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