Budgeting Bank Transfers

Hi, I own 2 small businesses.  I have 1 personal checking account, 1 personal savings account and 2 business accounts.

Income comes into Business Account #1, then I transfer money into my personal checking, into my personal savings and into Business Account #2.

How would I budget the following transactions, just as an example:

$10,000 in-flow(income) into Business Account #1 -> Transfer $6,000 into personal checking account -> Transfer $3,000 into Business Account #2


$10,000 in-flow(income) into Business Account #1 -> Transfer $6,000 into personal checking account -> Transfer $3,000 into Savings Account -> Transfer $2,000 into Business Account #2

What's the best way to handle these situations?



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  • Hello, Toni!

    Do you have separate budgets for each business? Or are your businesses sharing a budget with your personal finances? The best way to handle this is going to depend on how many budgets you're using.

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    • Matthew Thank you for your response.  Right now I only have 1 budget.  But within that budget, I have a separate category for each business account.  Is this the proper way to handle this?  What would you propose?

    • Toni The Tiger Even though this is going to sound more complicated (and will take some time to set up), I think the best solution is to give each business its own budget.

      That's because YNAB is designed to treat all of the money in all of your accounts as a single pool of money, and let you freely move money between categories whenever you need to. That works great when we're talking about your personal finances, but money in your business account really does have a different purpose because of the account that it's in.

      Giving each business its own budget has several big advantages: (1) It make sure that the money in the business account is always budgeted for jobs related to that business. (2) It makes your reports clearer at tax time. (3) It lets you categorize transfers going into or out of that business—as Owners Investment, or Reimbursement, or whatever category is appropriate.

      Please let me know if you'd like to talk through how to set this up. I have a small business myself, and I'm really happy that I gave it its own budget!

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    • Matthew yes, I'd love to talk through how to set this up.  I think you're right, this is the best route to go.

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