Paying myself from my business
I've recently separated personal and business into 2 budgets. Stoked about that!
I'll try to explain as easily as possible:
Wondering how you all pay yourselves from the business. I would assume that I'd need to keep my personal account in the business budget in order to 'make transfers' and have it to reflect where the money is coming and going. Otherwise, how would I get rid of that money?
And when I do that, it adds to my 'To Be Budgeted', of course. I would then have to create a category named FUNDS NOT AVAILABLE or something budgeted with the exact amount of what's in my personal so I don't trick myself into thinking I have more money than I actually have.
Is this the only way to do it? Feels messy. I might not be thinking outside the box here.
Only business accounts are in the business budget. Only personal accounts are in the Personal budget.
In the Business Budget, you would budget for and categorize the outflow as an Owner's Draw (assuming a U.S. sole proprietorship, or use payroll categories if you actually have payroll).
In the Personal Budget, it's an Inflow to To Be Budgeted and you budget the money to whatever categories you wish.