Owner contributions for reconciliation

Owner is a sole proprietor how frequently deposits money into the business account and then repays himself when cash comes in.  Previous bookkeeper did all the entries in GJ with only the business bank account attached.  I'd like to create new bank accounts so I can post the transactions as transfers and be able to reconcile at the end of the month.  Whats the best way to do this to make it clean?

Thanks

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  • 0 in reply to Angie Wolfe

    Based on your question

    Whats the best way to do this to make it clean?

    I gave you my best answer.

    I have the policy that business is business and personal is personal.  Personal bank accounts do not belong in a business set of books.  I would never pay someone to reconcile my personal bank account requiring them to post every single personal entry to match the statement and I would never give my business bookkeeper my personal banking info.

    But if you really want to do it, what is stopping you?  Are you asking how to create a new account to track the personal transactions?  What question are you trying to get an answer to?

  • 0 in reply to Angie Wolfe

    Adding the owner's personal bank account to a company set of books opens up wealth of opportunity for error.  I would not do this.  Richard is correct; the way you were doing it is correct.  The owner should review his contributions / withdrawal GL monthly if there is a concern.