Our business converted to an Llc from sole proprietor last year. I also started using quick books for our accounting.
First question is, how are the owners personal expenses paid? From what I understand personal expenses would still be paid from the profits of the LLC, but would need to be documented as personal. The plan was to have the person expenses paid out of a personal account, and then one check reimbursed to them from the llc and mark that as personal expense.
Second. Any money moved from the LLC to a personal account needs to be documented in quick books correct?
How would you document a owner taking money from the business and putting it into a personal savings? I was thinking it would be a transfer of funds from one account to another, not an expense.
If a check was wrote out for cash by the owner, that would need to be document as a transfer from checking to cash on hand correct?
Im trying to get this figured out because we are getting mixed answers from some professionals we have talked to.
Thanks in advance!
First question is, how are the owners personal expenses paid? From what I understand personal expenses would still be paid from the profits of the LLC, but would need to be documented as personal. The plan was to have the person expenses paid out of a personal account, and then one check reimbursed to them from the llc and mark that as personal expense.
Second. Any money moved from the LLC to a personal account needs to be documented in quick books correct?
How would you document a owner taking money from the business and putting it into a personal savings? I was thinking it would be a transfer of funds from one account to another, not an expense.
If a check was wrote out for cash by the owner, that would need to be document as a transfer from checking to cash on hand correct?
Im trying to get this figured out because we are getting mixed answers from some professionals we have talked to.
Thanks in advance!
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