I've been using Quickbooks for years now and put everything in the same company, personal and business: yes, I know - really really bad idea. So I'm finally going to split the personal from the business stuff, but I don't know how to start it. I've created a new company in Quickbooks for my personal accounting, imported the accounts from the original company to the personal company. It looks like I'll have to manually enter in all the transactions in the personal company and then delete them from the business company? But how do I do this when I've used the same checking account and credit cards for both?

Such a mess I've made...

As a starting point, get a separate business checking account from now on. As far as I know, you're stuck manually transferring things. Personally I'd start 2 new files, a new business and a new personal, and go from there, leaving the combined company file for record keeping.

A couple of things to think about... You can assign all of those personal transactions that you recorded into your business in Quickbooks to an "owner's equity" account so that your accountant can differentiate personal transactions from business ones.

Second, there are also ways of splitting a transaction between personal and business expense when you enter it. Do you know how to do this?

Thanks Alyssa and Nathan!

I forgot to mention that I'm just starting the process of filing as an S-Corp, so once that is set I'll get a bank account and credit card under the business name.

How would this owner's equity account be set up? Would I just be dumping everything personal in there, or can I still keep the assigned accounts (food, clothing, etc.)?

I'm not quite sure I know what you mean by splitting the transaction. Do you mean dividing the expense into 2 amounts, assigning each amount to a different account?

Just create a new expense account called Owner's Equity or Owner's Draw and assign those personal expenses to that account (there may already be one if you look through your chart of accounts).

Yes to the last question. If you had a 50.00 cable internet bill, you could split it in half, assigning 25 to owner's draw, and 25 to your business internet account.

Emily,

While having a separate QB file for personal and business is the best solution, if that is not the case currently you can

Go to your chart of accounts and look under Equity

There should be an account already there called Owners Equity or Owners Draw. If not then make one. Once you have an Owners Draw account set up make additional accounts to track your personal expenses and where it says Sub Account, put in Owners Draw. You can have as many sub accounts as you want to track your personal expenses if that is important to you.

By moving your personal expenses to an equity account it gets the expense off of your profit and loss statement and gives you a better idea of what your business is actually making.

I hope that makes sense.

Melissa O

I just re read your original post. You have imported your information in and now you want to split it. I am not sure I follow that.

If the information is there in QB you shouldn't have to re enter it; just change the accounts that the expenses have been posted to.

Hopefully I haven't confused you more.



Melissa O