How do I show paying myself on QuickBooks?
I have just set up a business bank account rather than using my personal bank account to pay Checks and cash into so will now need to pay myself. How do I show this in QuickBooks?
Hello Nena!
Welcome to our QASolved Community Forum.
It depends on how your business is organized
A sole trader, would have equity accounts for the owner. I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership):
[name] Equity (do not post to this account it is a summing account)
- Equity
- Equity Drawing – you record value you take from the business here
- Equity Investment – record value you put into the business here
For a company organized as Ltd, you need to pay yourself using payroll.
This also depends on which country you happen to be operating from.
Hope this helps.
Cheers!
