Accounting NOT TAX Question
I have a business checking account (sole proprieter) and a personal checking account. I will at times transfer money from my personal account to my business account when funds get low or if my business account has more money, I will transfer some to my personal account to spend freely. Is this a wrong way to be doing things? Should I be doing some sort of documenting? Does the IRS care about this come tax time even if I keep track of sales for the business?
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Thank you. What if it wasnt a sole propietorship, would I have to do things differently? Would these be loans? Distributions?
It depends on your business structure. But with all formal separate structures, you have to go overboard to not co-mingle funds.
[addsig]
Thanks LOK
[ Edited by finniganps on Date 04/26/2007 ]
Ask potential CPAs and, to a lesser extent, attorneys, if they own property themselves for investment, rental, speculation. Those who do usually have better insights and more at stake than those who just studied it and charge money to talk about it.