Private Withdrawals in Gekko

Sometimes you pay for things from your business bank account that are not business expenses. These are called “private withdrawals.” For many entrepreneurs, especially sole proprietors, private withdrawals are not a big deal. You just need to make sure these costs are not reported as business expenses (see our blog post Private withdrawals and other personal expenses in Dutch for more details).

Bank transaction type: Private

Gekko does not have an extensive feature specifically for booking private withdrawals, since you can usually leave them out. Via the bank page of Gekko you can open the transaction of your private withdrawal. By selecting the 'Type Business' in the top left, you can change the type to 'Private'.

Selecting a private transaction means that this transaction does not affect your company records. For instance when you add or withdraw money from your private bank account or buy something non business related from your business account.

However, if you do want to register private withdrawals as costs in your Gekko administration, you can do so as follows:

• You can add the costs under the cost category “Personal costs.” If you use this category, the VAT will not be included in the VAT return.
  
  
• If you have a Premium account, you can create a separate cost category in your settings called “Private withdrawal” or any other term you prefer. Make sure to mark this category as non-deductible for VAT so it won’t be included in the VAT report.

Income tax

The only thing to keep in mind is that these booked private withdrawals will still appear as costs in your cost overview. So, on your dashboard, you will see the private withdrawals reflected in the tables. 

Therefore, when you file your income tax or corporate tax, you need to filter these costs out of your taxable results.