The "Owner’s Funds" Bank Account

The Owner’s Funds bank account is an internal bank account created to simplify bookkeeping. It allows you to record income and expenses without needing to add or connect a bank account.

Why use Owner’s Funds?

• Simplicity: Designed for transactions involving cash, personal credit cards, or miscellaneous expenses where detailed bank reconciliation isn't required.
• Speed: Log income and expenses quickly and move on with your day.
• Accounting Accuracy: From a technical perspective, this account is categorised under Drawings. It represents money you, the owner, have either put into or taken out of the business by paying for business expenses from personal funds, or receiving business income as cash or funds into a personal account that you have not set up in Clear Books.

How it Works

If you use the "Manually record income" or "Manually record expenses" options only (i.e. not adding/connecting a bank account), the system creates the Owner’s Funds account for you automatically.

If you add a business bank account later, the Owner’s Funds account will become visible as a bank account in the Bank accounts widget on the Dashboard. You can then choose between your business bank account or Owner’s Funds when recording new transactions.

How to Manually Add an Owner’s Funds Account

If you started by connecting a bank account, and haven't recorded income or expenses manually, but would also like an Owner's Funds bank account option, you can add it manually:

• Go to the Dashboard and locate the Bank Accounts widget.
• Click the Add Account link.
• Select Owner’s Funds Account from the options.
• Give the account a name (e.g., "Owner's Personal Funds") and click Save.