Paying yourself

[Guest]

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.

[N Owen]

Record as Owner draws - under Equity section

On 29 Sep 2005 21:16:24 -0700, paulvitro@gmail.com wrote:
Ok folks, it's stupid question time.I'm a sole trader with a very straightforward business... no staff, andnext to no expenses, and I keep no stock.If, for example, I take $1000/week out for my personal pay, how do Irecord that in Quickbooks? Obviously, I'd want to keep the totalmatching 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 toshow $52,000 less in profits than I actually made.Hope that makes sense.PV.

[Guest]

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.

[Tee]

<paulvitro@gmail.com> wrote in message
news:1128104275.596938.187010@o13g2000cwo.googlegroups.com... 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!

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.

--
Tara

[_]

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.



<paulvitro@gmail.com> wrote in message
news:1128104275.596938.187010@o13g2000cwo.googlegroups.com... 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.

[Guest]

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

Appreciate the help and advice!

PV.