Quickbooks is telling me I can't deposit to a personal account, but it's a business account. Is there a setting I'm missing?

There isn’t a setting you’ve missed when depositing your money into your personal bank account, david422. I’ll share possible reasons why this happens and the steps you can take to reach your goal.

The message about the bank account being “personal” when you apply for the QuickBooks Line of Credit (LOC) likely comes from an internal system check by QuickBooks Capital (the company that issues the LOC), which goes beyond the basic setup in your Chart of Accounts.

Even if you use the account only for business and have it set up as a “Checking” account in your QBO Chart of Accounts, if the bank itself has the account registered under your personal name or as a personal account type (rather than a commercial or business checking account), the LOC application may flag it.

You can check the following to verify if the account is personal:

• Review your bank’s records: Confirm with your bank whether the account is formally set up as a business or commercial checking account. If it was opened as a personal account and you’ve been using it for business purposes, you’ll need to open a proper business account.
• Verify the name match: Make sure the legal name on your bank account exactly matches the legal business name on your QuickBooks account and the LOC application.

While this method usually doesn’t stop the LOC application. However, it is essential for accurate accounting and could factor into QuickBooks’ assessment. You can also check your Chart of Accounts to ensure your checking account is correctly classified.

Here’s how:

1. Go to the Gear icon and select Chart of accounts.
2. Find the bank account where you are trying to deposit the funds.
3. Click the Dropdown arrow next to View register and select Edit.
4. Under the Account type column, confirm it’s set to Bank.
5. Under the Detail type column, make sure it’s set to Checking (or Savings/Money Market, if applicable).

Please let us know if you need any additional assistance. The Community forum is always happy to help. Wishing you and your business continued success!