topic Sole proprietor in Get your taxes done using TurboTax

Sole proprietor

Scoop980 — Tue, 24 Feb 2026 08:14:58 GMT

1. As a sole proprietor, can I NOT deposit cash received for services but still report that same cash as income? Use the cash for personal expenses.
2. therefore, then would it be alright if my cash bank deposits DON’T match my income?

Re: Sole proprietor

VolvoGirl — Thu, 28 Dec 2023 20:46:38 GMT

That's ok. It is still income. You might want to use Quicken or QuickBooks to keep tract of your income and expenses. You can pay bills any way you want, from cash, from checking, from credit card, etc.

Re: Sole proprietor

Scoop980 — Fri, 29 Dec 2023 20:29:35 GMT

This is a question. It went in the wrong spot I think

So to be clear, as a sole proprietor,—— instead of depositing cash into the business account and then taking an owners draw, I can just keep it to use for personal expenses as long as it’s still recorded as income on my schedule C.?

Re: Sole proprietor

VolvoGirl — Fri, 29 Dec 2023 20:30:06 GMT

Yes. You don't take an owner's draw or expense withdrawals. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.