[helenpearl]

I use quickbooks online for the bookkeeping of my sisters store and all of her money is deposited into either Paypal or Square.com. Square is easy because the money goes directly into the business account but the paypal needs to be transferred. Then however her personal account is linked to her business account and she makes transfers to that account from the business acct. I am getting confused on what categories these "transfers" should go in for the balance sheet and income statements to be accurate.

Can anyone help? I have just started round 2 of chemo of my second occurrence of because and the chemo has eaten away my accounting degree.

[paraclete]

Quickbooks has a transfer function where you record the transfers between one bank account and another.

You will have to treat each of these facility providers as a bank account and record the transaction using the cheque and deposit functions, you can then reconcile the accounts to ensure you haven't omitted any transactions.

You will need to set up a personal account for her, under equity or proprietors funds so that these cash flows between the business and her personal accounts are recorded

So for example she makes a payment through Paypal for personal reasons

You will record the payment (cheque) transaction in the Paypal account with an allocation to her equity account. When the Paypal account is reimbursed, let's say from the business bank account you will record a transfer between the bank account and the Paypal account. You can see that the amount spent will have been deducted from her equity. If she settles up with the business then you record a deposit in the bank account with allocation to her equity account

In Quickbooks you can set up income statement and balance sheet to show all the balances

Anytime I can help with Quickbooks