How do I show withdrawals of equity from my bank account for personal use? In other words, as a VAT registered sole proprietor, how do I pay myself?

Greetings, matthew5.

I’m happy you turned to the Community for how to pay yourself and account withdrawals from the bank.

Great news! QuickBooks Online can help track personal use in a simple and straightforward way. To accomplish this, you’ll have to create an equity account first and write a check to show the drawings.

Here’s how to enter the account:

1. Go to the Gear icon at the top, then select Chart of Accounts.
2. In the upper right-hand, click on the New button.
3. On the Account page, click on the drop-down for Account Type and select Equity.
4. Choose Owner’s Equity as the Detail Type.
5. Enter the account’s name
6. Fill in the necessary fields.
7. In the Default VAT Code section, select the correct tax code.
8. Click on Save and Close.

To input the withdrawals:

1. Click on the Plus icon (+) at the top, then choose Cheque.
2. Select the bank account where your money will be withdrawn.
3. Under Category, select Owner's equity.
4. Enter the amount of the transaction and VAT code.
5. Click on Save and Close/Save and New.

With these steps, you should now be able to track your personal transactions.

Please let me know how this turns out or if you need further assistance with these steps. I'll jump right back in to assist further.