Starting a business and not sure how to move transactions from personal account to business account?
I have spent several thousands of dollars on a new business (Recording studio), and I’ve made those purchases in my personal checking account. Now, I am starting a new business account to keep things separate, but is there some way to "move" those identified business transactions to the new account?
Get your business accounts opened. Then transfer money into the business checking account.
Pick your start date (date you "opened" for business). Your previous expenses are "startup" costs and are mostly deductible over several years, not in your first year of business. So keep track of them, but they don’t really feed into your new business accounts.
Info from the IRS on startup costs:
http://www.smallbusinessnotes.com/fedgovernment/irs/583/startup.html
record as follows:
dr expenses XX
cr loan payable XX