How should I account for this

[kaleob]

Hi, I have been using my bluebird debit card to do my business trans plus my personal business. I need to account for expenses, both personal and business exp have been dragged into sage one premium. Can you provide example of what to debit and credit. Note account shows deposit for bus and personal. Expenses for business and for personal.

Thanks

[Harold Mansfield]

Hi, I have been using my bluebird debit card to do my business trans plus my personal business. I need to account for expenses, both personal and business exp have been dragged into sage one premium. Can you provide example of what to debit and credit. Note account shows deposit for bus and personal. Expenses for business and for personal.

Thanks

So are you saying that you don't know which of your expenses are business and which are personal and you're asking if we can somehow tell you which is which?

[kaleob]

So are you saying that you don't know which of your expenses are business and which are personal and you're asking if we can somehow tell you which is which?

I no what is biz and what is personal expense. should I debit cash and credit owner's equity for my deposit made into the business?

should I debit biz expense and credit cash for biz expenses?
should I debit withdrawal and credit cash for personal expenses?

Is this how to account for personal items especially.

[turboguy]

The business expenses would be debited to whatever expense category they are.
The personal expenses would be debited to owner withdrawal, salary expense or however you take money out of your business. You will have to pay income tax and SS on the expenses that were personal.

Of course the credit would be cash.

[Business Attorney]

Obviously it is best not to run the personal expenses through the business at all, but since Sage brings them in, I would credit cash and either debit a temporary account called "Advances to Owner" (later to be wiped out by a credit to that account and a debit to Owner's Equity) or simply debit Owner's Equity directly each time. In other words, it is exactly the opposite of the entry when you contribute cash to the business.

[kaleob]

Thank you.

[kaleob]

Thank you.
Obviously it is best not to run the personal expenses through the business at all, but since Sage brings them in, I would credit cash and either debit a temporary account called "Advances to Owner" (later to be wiped out by a credit to that account and a debit to Owner's Equity) or simply debit Owner's Equity directly each time. In other words, it is exactly the opposite of the entry when you contribute cash to the business.

[kaleob]

Thank you. since funds come from my paycheck and I file taxes with my w-2, doesn't that account for taxes to be paid and nothing else needs to be done?
The business expenses would be debited to whatever expense category they are.
The personal expenses would be debited to owner withdrawal, salary expense or however you take money out of your business. You will have to pay income tax and SS on the expenses that were personal.

Of course the credit would be cash.

[Business Attorney]

Thank you. since funds come from my paycheck and I file taxes with my w-2, doesn't that account for taxes to be paid and nothing else needs to be done?

Are you saying the funds come from your paycheck because you ultimately repay the personal expenses as a payroll deduction? If so, then in my example if you set up an account called "Advances to Owner" instead of eventually crediting that account and debiting Owner's Equity, you would credit that account and debit cash when you deducted the personal expenses from you paycheck. In that case you are essentially using part of the cash that would have been in your net pay to repay the advances.

[tallen]

Or are you saying that you pay off the credit card bill with your own personal after-tax money? If that is the case, then you need to be reimbursed by the business for the expenses that are deductible to the business.