I have a client who doesn't have a business account. Funds come into the acct. that are not related to the business. The business is a sole proprietor. I have been putting the funds in the owner's equity account. Is there a better way to handle this situation?
Yes. Tell your client to open a business account and keep the business and personal transactions separate.
Is there a better way to handle the payments I have posted to the owner's equity account?
No, if the owner puts money into the business, it increases his/her equity. Any money to pay his/her personal expenses should be debited to the Owner's Withdrawal (equity) account.)
