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Established Member

Am I entering Owner's Draw correctly?

we are an electrical contracting LLC

and first time using deskpro

how and under what do I pay myself

3 Comments
QuickBooks Team

Re: Am I entering Owner's Draw correctly?

You'll have to set up an owner's equity and then write a check to pay for yourself, Lucy Harris.

 

To create an owner's equity:

  1. Click Gear, and then click Chart of Accounts.
  2. Click New.
  3. In the Account window, click the Account Type drop-down arrow, and then choose Equity.
  4. In the Detail Type drop-down, select Owner’s Equity.
  5. Enter the Name, and the opening balance.
  6. Click Save and Close.

To write a check from an owner's equity account:

  1. Click Create (+), then click Check (under Vendors).
  2. Choose the bank account where your money will be withdrawn.
  3. Select Print later if you want to print the check. Then, fill in the check fields.
  4. In the Category field, be sure to select Owner's equity.
  5. Click Save and close.

Please get back to me if you need anything else. I'm here to help you some more.

Established Community Backer ***

Re: Am I entering Owner's Draw correctly?

@ShiellaGraceA 

 

Did you bother to read the link you posted, the article is from 2012 and has nothing to do with the OP question

 

@Lucy Harris 

 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), 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

 

To pay yourself, you write a check and use the equity drawing account as the expense (reason) for the payment

QuickBooks Team

Re: Am I entering Owner's Draw correctly?

Thanks for the call out, @Rustler,

 

I've already updated my post above. 

 

Have a nice day.