USA How do I account in my personal books (as opposed to business books) for ownership of a business?


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I am starting a sole proprietorship business and funding it with a capitol investment. I understand fairly well (kind of) how to do the accounting/bookkeeping for the business and will be doing the business's accounting myself. However, how do I account for the business in my own personal accounting books (I know I'm weird using proper accounting for personal finances)? Something about the personal side of this confuses me. What accounts should I open? Should I just have one asset account for the business? Should I have an income account of some kind? Should I account for drawing as a deduction from the business or as income? What would some of the regular transactions look like? Should I account for changes in the value of the business? I will not be paying myself a regular paycheck. I will only collect money by drawing.
 
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It would be doubling everything up but then if you regard the business as an entity and you the owner, then you would have the net worth of the business as an asset in your personal books, and the income you get as income in your personal books.

Are you trying to create work for yourself or .... ?
 
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smallbushelp

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Hi Aq, how's the business going? Do you still need input on this issue or any others? I would be happy to help.
 

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