Personal and Business Expenses in Goldenseal Accounting Software

Personal Expenses-- Separate Files

How do I enter personal & non-business expenses?

Goldenseal accounting software makes it easy to track personal and business expenses, either combined or separately. This page describes how to keep separate sets of business and personal records.

NOTE-- Click here for instructions on combined personal and business records.

Why Keep Separate Records?

The cleanest way to handle personal expenses is to keep them entirely separate from your business records. Create one Goldenseal company file for your business, and a separate file for your personal expenses.

To make this work, you also need to have separate bank accounts and credit cards: some that apply only to your business, and others that apply only to personal expenses. No mixing!

HINT-- Your accountant will probably recommend this approach! Having separate books is legally required if your business is a corporation, LLC or LLP. Separate books are a good idea even if your business is a sole propriatorship, or other informal structure, since it makes tax filing easier, and gives you a truer picture of your finances.

Income

When you keep separate books, all business income is entered into the business company file, via Sales, Billing Records for project work, or Rental Transactions.

You will enter yourself as an Employee account, and then take income in the form of wages, salary or draws.

For investments that you make in the business or equity you withdraw, you can also enter yourself as an Owner and then make owner investments or draws.

Expenses

When keeping business records separate from personal records, you will generally make a decision whether each expense is business-related or not, and then pay from the appropriate checking account or credit card.

In rare cases when you pay for a business expense out of personal funds, handle it as an employee reimbursement to your employee account, the same as if an employee paid for the item.

In rare cases when you pay for a personal expense out of business funds, handle it as an employee purchase for your employee account, the same as if the item was bought for an employee.

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