How to register income and expenses that are not in the bank account

Options
Echo
Echo Unconfirmed, Member ✭
edited June 2022 in Paying Bills, Online Billers & Reminders (Windows)
I'm working on a project with a partner. We have a bank account, but both of us have paid for expenses from our personal accounts, and would like to account for those expenses in one budget. Do I make two additional credit card type accounts and report on the business bank account + credit cards? Any other ideas? Thank you!

Answers

  • studpup
    studpup Windows Beta Beta
    Options
    I would create accounts and log expenses there
    Southwest      Travel:Air         $200
    and put in extra transactions so the balance on that account is always zero and doesn't affect your net worth reports.
    Contribution    [Echo Contribution]    $-200

    wags Glad to be here!

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Options
    @echo Does the project file a tax return?  HOW are the income and expenses from the project reported to the IRS?
    Those answers will lead to my responses to your questions.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Echo
    Echo Unconfirmed, Member ✭
    Options
    We haven't yet filed (new project) but are an LLC and will file as a schedule c on both partner tax returns
  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    Options
    I'm going to suggest a new and separate Q data file, since neither of you are 100% owners of the project.
    Then, any income that you receive, or expenses that you pay, are transfers to/from the project and would be recorded as transfers to/from a new "Project" account that you set up in  Q.  Your Project account should start, in  your personal Q data file, as ONLY the initial payments that you made to the account.
    What Q product are you running, and we can  go into this a bit deeper.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Echo
    Echo Unconfirmed, Member ✭
    Options
    Thanks you! using windows subscription.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Options
    Sorry you can't file schedule C for it.  You need to file a Partnership return or LLC return  either a 1065 or 1120.  You better see an accountant right away and get set up right.  You will get a K-1 and maybe a W2 from the Business return to enter into your personal returns.

    I'm staying on Quicken 2013 Premier for Windows.

  • Echo
    Echo Unconfirmed, Member ✭
    Options
    I'm so impressed with this community! Thanks for your eagle eye. I have already confirmed a process with my accountant, and must have the wrong name for the filing. Appreciate the great focus!
This discussion has been closed.

Categories