Business and personal finances?

[justin_time]

What I do, is go to my bank, use my business debit card, tell the teller i want to transfer money to my personal account. I keep my receipt for my books. When it's time to enter that into the books, my accountant suggested me to go in the General Journal (could be different from accounting software) but that's where I go, then I put a credit of $0.00 from business account and I debit the Owners withdrawls account $0.00 Hope this helps

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Justin Pitre
Just in Time Yard Services

[picframer]

Lawn care business tips

Originally Posted by justin_time What I do, is go to my bank, use my business debit card, tell the teller i want to transfer money to my personal account. I keep my receipt for my books. When it's time to enter that into the books, my accountant suggested me to go in the General Journal (could be different from accounting software) but that's where I go, then I put a credit of $0.00 from business account and I debit the Owners withdrawls account $0.00 Hope this helps Careful on that one bud, CCRA considers that a shareholders loan and if not repaid within the year it's a taxable benefit.......set yourself up as a supplier, subit an invoice for your time, issue yourself a cheque, at the end of the year it's a wash if you are sole.

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Andy
Halifax, Nova Scotia

[jasonw]

Originally Posted by justin_time

What I do, is go to my bank, use my business debit card, tell the teller i want to transfer money to my personal account. I keep my receipt for my books.

When it's time to enter that into the books, my accountant suggested me to go in the General Journal (could be different from accounting software) but that's where I go, then I put a credit of $0.00 from business account and I debit the Owners withdrawls account $0.00

Hope this helps

Hmmmm now I am more confused lol.

[justin_time]

Definition:

Owner's Draw, usually just "Draw" is the amount taken out by the owner of a sole proprietorship or partnership for his or her personal use. A self-employed business owner does not usually take a salary. Instead, he or she makes an initial investment (capital contribution) in the business from personal funds and during the course of the business takes money out as draw and invests more money, from profits or from personal savings.

Owner's draw decreases the owner's capital account. Typically, a check is written on the business account to the owner and it is deposited in the owner's personal account.

Be sure to keep business and personal spending separate. The owner's draw should be the only place where personal and business intersect.