How Cheqbook "mixes" Business & Personal Spending - an Overview

In the real world many small and especially new businesses regularly mix business and personal expenses in the same bank accounts. 

Most often they're using personal credit cards for business expenses, or the business account to purchase something personal.  Whatever has money on it or in it at the time often gets used first.

Generally this isn't recommended, since it takes considerable extra time to record and categorize all those extra personal transactions in side a company's set of books, but Cheqbook has some features that makes this easier.

First, we've allowed users to turn on a special set of expense categories for personal expenses.  If this feature is on when you categorize something as personal, it moves to a special personal report that prints after the business Profit and Loss.  It's essentially a mini P&L for personal, and for business purposes you can turn off this extra section of the report if you only want to see and share your actual business operations.

For more sophisticated users note that the balance sheet is NOT divisible.  We considered this, but it would have greatly complicated the complexity of record keeping and reporting: so just presume the balance sheet is always 100% business.

Second we also have the ability to identify linked accounts as mostly personal or mostly business, so the yellow coding engines can categorize them appropriately.  

This makes Cheqbook a system in which you can safely mix business and personal activity.

A few hints that may help:

You don't have to commit to link all of your personal accounts, especially if they have little or no business activity.  To get a single business transaction recorded just do a manual entry, starting in the equity account "Owner Capital Contributions" and recording the expense against the appropriate business expense account.  Ask your bookkeeping advisor for further help with this.

Here's a few related FAQ's on this topic that may also help:

Many small business owners that mix and match payments really find the approach we take is simple and easy to keep up to date once they under stand it. If you have other questions or need some clarity on something we missed let us know by submitting a support ticket, we're here to help!



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