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Paying yourself

Ok folks, it's stupid question time.

I'm a sole trader with a very straightforward business... no staff, and next to no expenses, and I keep no stock.

If, for example, I take $1000/week out for my personal pay, how do I record that in Quickbooks? Obviously, I'd want to keep the total matching my bank balance and for the moment, I'm marking it in as "Other Expense", but obviously, it's not really an expense.

At the end of the year when I print out financial report, it's going to show $52,000 less in profits than I actually made.

Hope that makes sense.

PV.

Reply to
paulvitro
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Reply to
N Owen

Thanks for the reply, although if I could find that, I would do it. I'm using Professional Services Edition 2005, and don't see anything about Equity in there.

While I was snooping around, I did find an option to under Banking to "Transfer" funds to "Undeposited Funds - Other Assets"

That seems to keep the Register balance in sync with my bank account, and doesn't throw the Profit/Loss Report out of whack.

Is that the same thing? Or if not, is it an acceptable way to do it?

Appreciate your help!

PV.

Reply to
paulvitro

If the account isn't there then create it. The type is Equity and its called Owner Draws. Monies you pay yourself get recorded to that account.

Reply to
Tee

No, it's not the same thing. No, it's not an acceptable way to do it.

Create a new Account of type "Equity" and call it Owner's Draws.

Then meet with your accountant. Ask him to have a general look over your record-keeping to see what else you may be missing - there's bound to be more.

account,

Reply to
!-!

Thanks folks - got it figured out (with your help).

Appreciate the help and advice!

PV.

Reply to
paulvitro

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