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drawings

4 replies
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hi

i pay myself drawing s for wages. ,

but i have it set up as a cash account money at hand

and a expense, is this right?

not sure it is a expense as it is not for business use ?

thank

QuickBooks Online

A

Ashleigh1Answer

Level 14

Hello Jpc4, Thanks for coming back to us here so you have options you can post it to an owners equity account as it explains on the info above by KlentB or you can post directly to a wages account or you also have the option for a current liability account for payroll clearing. So you could do the account as account type- equity>name- partner distributions (or whatever you want to call it )>detail type - partner Distributions or account type- expense> name -payroll expense (or whatever you want to call it)> detail type- payroll expense or account type Current Liabilities> name- Payroll clearing (or whatever you want to call it)> detail type-payroll clearing. However for your wages you are best of speaking to an accountant for advice on how you want it posted. As it shouldn’t be an actual bank account. They will be able to advise more on which way is best as we are just technical support here and not trained accountants.

K

Klent

Level 8

I'm here to share some info about paying an owner of a sole proprietor business, jpc4.

If you're a business owner, you must be paid using withdrawals instead of a paycheck. To do this, you'll have to set up a special equity account to keep track of asset withdrawals made by the company to yourself. Here's how to do it:

Go to the Gear icon.
Select Chart of accounts, then click the New button.
Set Equity as the account type.
Choose Owner's Equity from the Tax form section or Detail Type drop-down menu.
Hit Save and close.

Once done, you can simply create a regular check to issue the payment. Be sure to affect the account you created.

For tips in recording and tracking your payables in QuickBooks Online, I recommend reading this article: Learn the difference between bills, cheques, and expenses.

Please know that we're open here 24/7, so please don't hesitate to visit us again if you still need more help in handling your other business transactions. The Community always has your back.

J

jpc4Author

so i don't use cash in hand or drawings?

just i was on chat support and this is what they told me to do ?

T

thecartoonman

I class it as Business/Owner Withdrawal.

This way it's correctly treated but does not appear as a business expense when you do your income and expenditure reports..

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