jeudi 27 mars 2014

How to account for paypal payments from personal account to business account

Hi, I'm a newbie here and not an accountant or with any accounting experience, so forgive this painfully stupid question.



My business is part time and I have a full time job from which I draw a salary.



My small business often has the need, when paying vendors and so on, to move money from my personal paypal account to my business paypal account in order to have sufficient funds -- usually because I have a lot of expenses all due at the same time but have not made sufficient sales to cover them. Once the funds build up in my business paypal account, I often repay myself by moving some funds back again, but not on a dollar for dollar basis.



It occurs to me though that I am being taxed twice on that money though -- once for payment to me by my employer and then again when I move the money into my business paypal account. I imagine that there must be some form of accounting to prevent that, but paypal prepares a 1099 and sends it to the government every year, in which my payments to myself are counted as income. How to I sort this all out in my accounting?




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