How do I enter a non income payment into a business account?

For example, a medicare rebate payment, or payment from a family member that is not income. How is this entered? Is the a recommended way to do this?

I understand that this not the preferred way of using a business account, but if there is a way of separating the occassional payment, it will work better for me

Thanks, Chris

Chris

280 Points

Posted 1 year ago

1 year ago

Farmhand

112 Points

Hi Chris, in my layman's understanding of accounting and using Reckon software what I do is use the make deposits form in Reckon using an equity account to fill the FROM field and the business bank account in the TO field. What you are doing in concept is investing money into your own business. Hence a debit to the equity account and a credit to the bank account. Hope this helps. Regards John.

(Edited)

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1 year ago

Steve Cook

3,340 Points

In the chart of accounts I use:

"Income" and "Expenses" for business purposes
"Other Income" and "Other Expenses" for non-business purposes

Also have business and personal bank accounts

When you run business reports etc you will need to filter only the "Income" and "Expenses" accounts

(Edited)

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