I'm here to ensure you can pay yourself in QuickBooks Online (QBO). This way, you can keep your financial data accurate and monitor your business's growth accordingly.
Paying yourself as a business owner depends upon the business structure and payment method. The owners of a sole proprietorship, partners, and LLCs are considered self-employed. With this, you must be paid with an owner's draw instead of a paycheck through payroll.
However, before performing the steps below, I would encourage you to consult with your accountant. They can further provide expert advice and direction tailored to your business needs.
Here's how:
Go to Settings or Gear icon, then choose Chart of accounts.
In the Chart of Accounts window, hit New.
From the Save account under dropdown, tap Equity.
From the Tax form section dropdown, choose Owner’s Equity.
Enter a name for the account in the Account name field (for example, Owner's Equity) and all other info needed.
Set the starting date and enter an opening balance in the Starting date and opening balance section.
Please keep me posted on how it goes in the comments below. If there's anything else you need, or you have other concerns about the Owner's Equity account and paying yourself in QBO, I'm always ready to help. Take care, and have a great day.
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