I'm considering combining my 2 small business & personal budget in to 1 budget
I would love feedback from Todd Emily or Jen and anyone else who is struggling with juggling multiple budgets as to whether or not you think it is a good idea to combine my 2 business and 1 personal budgets in to one budget.
I already keep separate books for the purpose of book keeping in Quickbooks and Quicken.
The objective is to simplify the budgeting in to one place where I can track all income and expense and have a single place to view our net worth. I'm pretty good at keeping personal spending separate, but my husband isn't and I think knowing how much we have in all accounts, and how much is being spent in each category across all accounts is useful.
Can you think of any reason why this is a bad idea?
If you are really running a business and are serious about it, then you are keeping things sequestered by having separate business banking accounts. When you have a budget in YNAB, all dollars within all accounts in the budget are fungible, which means any dollar can be used for any purpose. The thing is, that's not the case when you are mixing personal and business accounts in your budget.
Keep them separate.
Hi Nolesrule, thanks so much for your response. I'm not sure if you noticed that I don't do my official book keeping in YNAB. I do that in Quicken and Quickbooks, so that is where I'm doing my serious business stuff.
I use YNAB for business, more to budget the money coming in. I use the money jars system, so I use a calculator that I created to split up my income by % to each financial "jar". I can easily run reports to separate business and personal income for the purpose of budgeting it.
I'm still tossing the idea around, but it would be really nice to have my whole net worth in one place.
That's actually a great idea about the net worth. Hmmm. I do still want to see all of my budget balances in one place and creating separate categories for the businesses should keep them separate. I am maintaining YNAB4 budgets separately, but I may experiment with all in one budgeting with the online version. You have great advice! Thanks so much!
There isn't a need for a quickbooks program for an "official" set of books in case of audit. The IRS will work off of what you have - even if it is hand written. YNAB files can be exported to show registers and a p & l, etc. The only reason you would need a more robust software is if you have a lot of depreciable equipment, do a ton of journal entries or needed REALLY detailed inventory tracking. (Simple inventory tracking can be done in YNAB). Many small businesses can work amazingly well within YNAB only. I even set people up using the profit first system using YNAB with no issues.