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Transactions, Accounts, and Import Tools
Transactions, Accounts, and Import Tools

Business, Personal, and Mixed

Updated over a week ago


We use import tools to add business transactions to your books.

The correct import tool is determined by examining the transaction type and account type.

As an S Corp owner, if you take the time to learn these types and methods, you will extract maximum value from your Collective subscription. Your monthly Financial Reports will be more accurate and you'll intuitively understand how to analyze and act on them.

Transaction Types

Business Transactions

Income and expense transactions of the S Corp

Accountable Plan Expenses

Expenses paid out of personal accounts that have a business and personal use.

The IRS allows the business portion of these mixed business and personal transactions to be calculated and added to the S Corp Books.

Personal Transactions

Income and expense transactions of your personal life

Some are common sense, others are decided by the tax code and IRS

Bank Accounts Types

Business Accounts

An account that, at its core, only contains business transactions.

Ideally it is also opened with S Corp's EIN.
If personal tranactions accidentally occur in business accounts, they are categorized as Shareholder Distribution or Contribution.

Personal Accounts

An account that contain, at its core, only contains personal transactions and accountable plan expenses.

If business transaction accidentally occur in personal accounts, they must be manually added to the business books.

Mixed Accounts

Mixed accounts don't exist.

Mixed accounts are really just business or personal accounts waiting to be seperrated.

Import Tools

The type of transaction and the type of bank account determines the import tool used to add business transactions to your S Corp Books.

Transaction Type

Bank Account Type

Import Tool



Accountable Plan Expenses




*The Spreadsheet Import is for exceptions only. As an S Corp owner, you must have Business transactions occur in Business accounts. It is sound business practice that keeps the corporate veil unpieced.


To help ensure your experience at Collective (and beyond) is successful, check out the following examples of transactions. All the nuances are not covered here, but this is a good place to start!

Business Transactions from Business Bank Accounts

Below are examples of expenses that should be paid from business accounts:

  • Software required for your work

  • Legal and professional fees such as Collective

  • Meals with a business associate (for more info on business meals, see here)

  • Business travel

    • Airfare, Hotels, Car Rentals

    • Tolls, Parking

  • Contractors

  • Job Supplies and Office Expenses

  • Equipment

  • Advertising/Marketing

  • Health, Dental, Vision Insurance Premiums

For more examples of common business expenses, click here. The full chart of accounts used by Collective can be found here.

Accountable Plan Expenses from Personal Bank Accounts

While Onboarding:

  1. Use the Reimbursements tool on your dashboard for home office expenses, business miles driving on personal cars, and phone and internet expenses.

  2. Complete it for each month back to your S Corp Books Start Date.

  3. If you are unable to complete this in time, it will not hold up the completion of your Onboarding, but your published financials statements will be incomplete, and quarterly estimated tax payment calculations will be inaccurate.

The mixed expenses below should be paid from personal accounts (and then the company will claim a percentage of these expenses via the accountable plan).

  • Phone

  • Internet

  • Home Office Deduction (Rent, Utilities, etc.)

See here for more info on mixed expenses.

Personal Transactions from Personal Bank Accounts

Below are examples of expenses that should be paid from personal accounts.

  • Charitable contributions (non-advertising)

  • Most food / meals (for business meals, see here)

  • Direct auto expenses (gas, car payments, repairs, etc.)

  • Federal and state income tax payments (including quarterly estimated taxes)

  • All client entertainment that does not involve food

  • Most subscriptions like netflix, hulu, youtube, spotify, ny times, etc.

    • Exceptions are discussed here

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.

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